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On January 1,2016 , the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years, and the estimated residual
On January 1,2016 , the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years, and the estimated residual value is $5,000. The machine is expected to produce 220,00 units during its life. Required: Calculate depreciation for 2016 and 2017 using each of the following methods. Round all computations to the nearest dollar. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2016, 30,000 ; units produced in 2017,25,000 )
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