Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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, eg. 2.75 and final answers to decimal places, eg. 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. 2017 expense $ 2018 expense $ 2019 expense $ 2020 expense $ 2021 expense $ S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

9780538751292, 324787359, 538751290, 978-0324787351

More Books

Students also viewed these Accounting questions