Question
On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700
On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700 and was estimated to have a useful life of six years or 700,000 cuttings, after which it could be sold for $23,400.
Required
a. Calculate each years depreciation expense for the period 2015-2020 under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2. Double-declining balance. 3. Units-of-production. (Assume annual production in platings of: 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)
1. Straight-Line
Year | Depreciation Expense |
---|---|
2015 | $Answer |
2016 | Answer |
2017 | Answer |
2018 | Answer |
2019 | Answer |
2020 | Answer |
2. Double-declining balance
Year | Depreciation Expense |
---|---|
2015 | $Answer |
2016 | Answer |
2017 | Answer |
2018 | Answer |
2019 | Answer |
2020 | Answer |
3. Units of Production
Year | Depreciation Expense |
---|---|
2015 | $Answer |
2016 | Answer |
2017 | Answer |
2018 | Answer |
2019 | Answer |
2020 | Answer |
b. Assume that the machine was purchased on September 1, 2015. Calculate each years depreciation expense for the period 2015-2020 under each of the following depreciation methods: 1. Straight-line. 2. Double-declining balance.
1. Straight-Line
Year | Depreciation Expense |
---|---|
2015 | $Answer |
2016 | Answer |
2017 | Answer |
2018 | Answer |
2019 | Answer |
2020 | Answer |
2021 | Answer |
2. Double-declining balance
Year | Depreciation Expense |
---|---|
2015 | $Answer |
2016 | Answer |
2017 | Answer |
2018 | Answer |
2019 | Answer |
2020 | Answer |
2021 | Answer |
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