Question
Phigam Steel purchases a machine on January 1 for $28,900. The machine has an estimated useful life of seven years, during which time it is
Phigam Steel purchases a machine on January 1 for $28,900. The machine has an estimated useful life of seven years, during which time it is expected to produce 114,900 units. Salvage value is estimated at $1,410. The machine produces 15,550 and 16,240 units in its first and second years of operation, respectively.
Calculate depreciation expense for the machine using the straight-line method of depreciation. If required, round your answer to nearest whole value.
Calculate depreciation expense for the machine's first two years using the double-declining-balance method of depreciation. If required, round your answers to nearest whole value.
(NOTE: When calculating depreciation, round intermediate calculations to four decimals and use your rounded answer for Year 1 to calculate Year 2.)
Calculate depreciation expense for the machine 's first two years using the units-of-activity method of depreciation. (NOTE: When calculating depreciation, round intermediate calculations to two decimals places.)
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