Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pronghorn Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was exist132, 048. The company estimated
Pronghorn Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was exist132, 048. The company estimated that the machine would have a salvage value of exist14, 448 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 22, 200 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45, 892.) (a) Straight-line depreciation for 2017 exist (b) Activity method for 2017, assuming that machine usage was 780 hours exist (c) Sum-of-the-years-digits for 2018 exist (d) Double-declining-balance for 2018 exist
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started