Question
On January 1, 2023, a machine was purchased for $122,500. The machine has an estimated salvage value of $7,300 and an estimated useful life
On January 1, 2023, a machine was purchased for $122,500. The machine has an estimated salvage value of $7,300 and an estimated useful life of 5 years. The machine can operate for 120,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2023, 24,000 hours; 2024, 30,000 hours; 2025, 18,000 hours; 2026, 36,000 hours; and 2027, 12.000 hours. (a) Your answer is incorrect. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round rate per hour to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 45,892) 1. Straight-line Method
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