Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1,2018, a machine was purchased for $105,000. The machine has an estimated salvage value of $6,420 and an estimated useful life of 5

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On January 1,2018, a machine was purchased for $105,000. The machine has an estimated salvage value of $6,420 and an estimated useful life of 5 years. The machine can operate for 106,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018,21,200 hrs; 2019,26,500 hrs; 2020, 15,900 hrs; 2021,31,800 hrs; and 2022,10,600 hrs. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, eg. 45,892.) 1. Straight-line Method 2. Activity Method Year20182019202020212022 3. Sum-of-the-Years'-Digits Method \begin{tabular}{cc} Year & \\ 2018 & $ \\ 2019 & $ \\ 2020 & $ \\ 2021 & $ \\ 2022 & $ \end{tabular} 4. Double-Declining-Balance Method Year 2018 2019 2020 2021 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions