Problem 11-11

On January 1, 2015, a machine was purchased for $90,900. The machine has an estimated salvage value of $6,060 and an estimated useful life of 5 years. The machine can operate for 101,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 20,200 hrs; 2016, 25,250 hrs; 2017, 15,150 hrs; 2018, 30,300 hrs; and 2019, 10,100 hrs.

Compute the annual depreciation charges over the machines life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.)

(1)

Straight-line Method

$

(2)

Activity Method

Year

2015

$

2016

$

2017

$

2018

$

2019

$

(3)

Sum-of-the-Years'-Digits Method

Year

2015

$

2016

$

2017

$

2018

$

2019

$

(4)

Double-Declining-Balance Method

Year

2015

$

2016

$

2017

$

2018

$

2019

$

Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the assets life applying each of the following methods. (Round answers to 0 decimal places, e.g. 45,892.)

Year

Straight-line Method

Sum-of-the-years'-digits method

Double-declining-balance method

2015

$

$

$

2016

2017

2018

2019

2020