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Pharoah Ltd. purchased a new machine on April 4, 2017, at a cost of $164,000. The company estimated that the machine would have a residual
Pharoah Ltd. purchased a new machine on April 4, 2017, at a cost of $164,000. The company estimated that the machine would have a residual value of $14,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,600 hours in 2017;2,100 hours in 2018; 2,500 hours in 2019; 2,000 hours in 2020 ; and 1,800 hours in 2021. Pharoah 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 $ $ $ (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. $ 2018expense2019expense2020expense2021expense$$$$ (3) Units-of-production for 2017 through to 2021. 2017expense2018expense2019expense$$$ $
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