Question
Robert Smith Company purchased a new machine for its assembly process on June 1, 2015. The cost of this machine was $122,000. The company estimated
Robert Smith Company purchased a new machine for its assembly process on June 1, 2015. The cost of this machine was $122,000. The company estimated that the machine would have a salvage value of $12,000 at the end of its service life. Its life is estimated at 5 years.
Required: Compute the depreciation expense under the following methods:
Straight-line method
Sum-of-the-years-digits
Double declining balance
Six Star Corporation purchased a piece of equipment at the beginning of 2012. The equipment cost $120,000. Its estimated service life is 7 years and has an expected salvage value of $6,000. The sum-of-the-years-digits method is used. The depreciation schedule has a $20,357 annual depreciation expense for a certain year.
Required: Determine what year the depreciation expense of $20,357 is on the depreciation schedule. Round all answers to the nearest whole dollar.
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