Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 11-11 On January 1, 2018, a machine was purchased for $102,500. The machine has an estimated salvage value of $8,000 and an estimated useful

image text in transcribedimage text in transcribedimage text in transcribed

Problem 11-11 On January 1, 2018, a machine was purchased for $102,500. The machine has an estimated salvage value of $8,000 and an estimated useful life of 5 years. The machine can operate for 105,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 21,000 hrs; 2019, 26,250 hrs; 2020, 15,750 hrs; 2021, 31,500 hrs; and 2022, 10,500 hrs. Your answer is correct. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to o decimal places, e.g. 45,892.) 1. Straight-line Method 18900 2. Activity Method Year 2018 18900 2019 23625 2020 14175 2021 28350 2022 9450 3. Sum-of-the-Years'-Digits Method Year 2018 31500 2019 25200 2020 18900 2021 12600 2022 6300 4. Double-Declining-Balance Method Year 2018 41000 2019 24600 2020 14760 2021 8856 2022 5284 Your answer is partially correct. Try again. Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset's life applying each of the following methods. (Round answers to o decimal places, e.g. 45,892.) Year Straight-line Method Sum-of-the-years'-digits method Double-declining-balance method 2018 23625 18900 2019 20207 18900 2021 18900 14175 18900 2023

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

Audit Standards A Comparative Analysis

Authors: Walter W. O Willborn

1st Edition

0873890345, 978-0873890342

More Books

Students also viewed these Accounting questions

Question

Explain basic guidelines for effective multicultural communication.

Answered: 1 week ago

Question

Identify communication barriers and describe ways to remove them.

Answered: 1 week ago

Question

Explain the communication process.

Answered: 1 week ago