Question
On January 1,2014,Evers Company purchased the following machine for use in its production process: Machine:the recorded cost of this machine was 180,000. Evers estimates that
On January 1,2014,Evers Company purchased the following machine for use in its production process: Machine:the recorded cost of this machine was 180,000. Evers estimates that the useful life of the machines is 4 years with a 10,000 salvage value remaining at the end of that time period Instructions: (a)calculate the amount of depreciation expense that Evers should record each year of its useful life under the following assumptions. (1)Straight-line method (2)Double declining balance method (3)Units-of-activity method and estimates that the useful life of machine is 125,000 units. Actual usage is as follows:2014,45,000 units;2015 35,000 units ;2016,25,000 units;2017,20,000 units (b) which method used to calculate depreciation reports the highest amount of depreciation expense in year 1?the highest in year 4?the highest total amount over the 4-year period?
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