Question
Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $27,500. Its estimated residual value was $8,500 at the end
Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $27,500. Its estimated residual value was $8,500 at the end of an estimated 5-year life. The company expects to produce a total of 10,000 units. The company produced 1,050 units in 2016 and 1,500 units in 2017. |
Required: | |
a. | Calculate depreciation expense for 2016 and 2017 using the straight-line method. |
b. | Calculate the depreciation expense for 2016 and 2017 using the units-of-production method. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.) |
c. | Calculate depreciation expense for 2016 through 2020 using the double-declining balance method. (Round your final answer to nearest dollar value.) |
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