Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandhill Ltd. purchased a new machine on April 4, 2014, at a cost of $190,400. The company estimated that the machine would have a residual

image text in transcribed
Sandhill Ltd. purchased a new machine on April 4, 2014, at a cost of $190,400. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four year life. Actual machine usage was 1,600 hours in 2014; 2,200 hours In 2015; 2,300 hours in 2016; 2,100 hours in 2017, and 1,800 hours in 2018. Sandhill has a December 31 year end. Calculate depreciation for the machine under each of the following methods (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.) (1) Straight line for 2014 through to 2018 2014 expenses 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $ (2) Diminishing-balance using double the straight-line rate for 2014 through to 2018. 2014 expense $ 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $ (3) Units-of-production for 2014 through to 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven Finkler, Judith Baker, David Ward

3rd Edition

0810235447, 9780763738136

More Books

Students also viewed these Accounting questions

Question

13.2 Describe the effects of child abuse.

Answered: 1 week ago