Question
Sheridan Company purchased a new machine on October 1, 2020, at a cost of $119,000. The company estimated that the machine will have a salvage
Sheridan Company purchased a new machine on October 1, 2020, at a cost of $119,000. The company estimated that the machine will have a salvage value of $12,500. The machine is expected to be used for10,000working hours during its4-year life.
Compute the depreciation expense under straight-line method for 2020.(Round answer to 0 decimal places, e.g. 2,125.)
Depreciation expense
Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was1,790hours.(Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answer to 2 decimal places, e.g. 2,125.25.)
Compute the depreciation expense under declining-balance using double the straight-line rate for 2020 and 2021. (Round answers to 0 decimal places, e.g. 2,125.)
2020 2021
Depreciation expense $ $
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