Question
Problem 6-23 Calculating depreciation expense using three different methods Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1,
Problem 6-23 Calculating depreciation expense using three different methods
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018:
| Purchase price | $ 70,000 |
| Delivery cost | $ 3,000 |
| Installation charge | $ 1,000 |
| Estimated life | 5 years |
| Estimated units | 140,000 |
| Salvage estimate | $ 4,000 |
During 2018, the machine produced 36,000 units and during 2019, it produced 38,000 units.
Required
Determine the amount of depreciation expense for 2018 and 2019 using each of the following methods:
Straight-line.
Double-declining-balance.
Units of production.
PROBLEM 6-23
a. Straight-Line
Show how you calculate the amount:
2018 $
2019 $
b. Double-Declining-Balance
Show how you calculate the amount
Units-of-Production
Show how you calculate the amount
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