Question
Sandhill Limited purchased a machine on account on April 2, 2018, at an invoice price of $332,220. On April 4, it paid $2,170 for delivery
Sandhill Limited purchased a machine on account on April 2, 2018, at an invoice price of $332,220. On April 4, it paid $2,170 for delivery of the machine. A one-year, $3,960 insurance policy on the machine was purchased on April 5. On April 18, Sandhill paid $7,840 for installation and testing of the machine. The machine was ready for use on April 30. Sandhill estimates the machines useful life will be five years or 6,153 units with a residual value of $77,180. Assume the machine produces the following numbers of units each year: 953 units in 2018; 1,483 units in 2019; 1,279 units in 2020; 1,390 units in 2021; and 1,048 units in 2022. Sandhill has a December 31 year end
Calculate the annual depreciation and total depreciation over the asset s life using: (Round answers to 0 decimal places, e.g. 5,275.) (1) Straight-line method Year Depreciable Cost 2018 Depreciation Expense Accumulated Depreciation Carrying Amount 2019 2020 2021 2022 2023 (2) Double-diminishing-balance method Year Opening Carrying Amount Depreciation Expense Accumulated Depreciation Carrying Amount 2018 2019 2020 2021 2022 2023 (3) Units-of-production method Year Units-of-production Depreciation Expense 2018 Accumulated Depreciation Carrying Amount 2019 2020 2021 2022Step by Step Solution
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