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Oriole Ltd. purchased a new machine on April 4, 2017, at a cost of $168,000. The company estimated that the machine would have a residual
Oriole Ltd. purchased a new machine on April 4, 2017, at a cost of $168,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2017; 2,100 hours in 2018; 2,200 hours in 2019; 2,300 hours in 2020; and 1,900 hours in 2021. Oriole has a December 31 year end. (a) 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, e.g. 5,275.) (1) Straight-line for 2017 through to 2021. 2017 expense $ 2018 expense $ 2019 expense $ 2020 expense $ 2021 expense $ (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. 2017 expense \$ 2018 expense \$ 2019 expense $ 2020 expense $ 2021 expense $ (3) Units-of-production for 2017 through to 2021. Blossom Ltd. purchased a delivery truck on May 1,2021 , at a cost of $74,400. The truck is expected to have a residual value of $7,890 at the end of its 4-year useful life. Blossom has a December 31 year end. Calculate the depreciation expense using the diminishingbalance method for 2021 and 2022. Assume the depreciation rate is equal to one time the straight-line rate. (Round answers to 0 decimal places, e.g. 5,275.)
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