Question
Question #4 HomeBox Inc. a furniture whole seller acquired new machine at a cost of $120,000 at the beginning of the fiscal year. The equipment
Question #4
HomeBox Inc. a furniture whole seller acquired new machine at a cost of $120,000 at the beginning of the fiscal year. The equipment as an estimated life of five year and an estimated residual value of $12,000. President of HomeBox has requested information regarding alternative depreciation methods. Expected useful life of machine is 12,000 hours. Actual annual hourly operations of the machine is as below:
Required:
a) Calculate yearly deprecation amount and the accumulated depreciation amount under the following methods;
i) Straight line method
ii) Reducing balance method
iii) Double declining method
iv) Units of activity method
v) Sum of year digit method
Year Hours Used 2016 3600 Hours 2017 2800 Hours 2018 2200 Hours 2019 2000 HoursStep by Step Solution
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