Question
Q2 Alladin Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May. Price
Q2 Alladin Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May.
Price $1,686,000
Freight-in costs $78,000
Prep and installation costs $18,200
Labor costs during regular production operations $214,100
Alladin intends to use the machine only 12 years, however, after which it expects to be able to sell it for $27,200 The invoice for Machine #201 was paid May 1, 2020. Alladin uses the calendar year as the basis for the preparation of financial statements. Instructions:
"(1) Compute the depreciation expense for the years indicated using the straight-line method for 2020. (Round to the nearest dollar.) "
"(2) Compute the depreciation expense for the years indicated using the sum-of-years'-digits method for 2021. (Round to the nearest dollar.) " (Round to the nearest dollar.)
"(3) Compute the depreciation expense for the years indicated using the double-declining balance method for 2020 and 2021 (Round to the nearest dollar.) " (Round to the nearest dollar.)
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