Question
On October 1, 2018, the Allegheny Corporation purchased machinery for $191,000. The estimated service life of the machinery is 10 years and the estimated residual
On October 1, 2018, the Allegheny Corporation purchased machinery for $191,000. The estimated service life of the machinery is 10 years and the estimated residual value is $4,000. The machine is expected to produce 340,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 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 2018, 17,000; units produced in 2019, 32,000).
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