Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $180,000. The company estimated that the machine would have a residual
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $180,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 9,000 working hours during its four-year life. Actual machine usage was 1,300 hours in 2014; 2,000 hours in 2015; 2,100 hours in 2016; 1,900 hours in 2017; and 1,700 hours in 2018. Oriole has a December 31 year end.
Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, eg. 5,275.) (1) Straight-line for 2014 through to 2018. 2014 expenses 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $ (2) Diminishing-balance using double the straight-line rate for 2014 through to 2018. 2014 expense $ 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $ (3) Units-of-production for 2014 through to 2018. 2014 expense $ 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started