Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Splish Corp. purchased machinery for $381,600 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value
Splish Corp. purchased machinery for $381,600 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $18,600, production of 290,400 units, and working hours of 25,000. During 2021, Splish Corp. uses the machinery for 2,650 hours, and the machinery produces 31,620 units. From the information given, compute the depreciation charge for 2021 under each of the following methods. (Round intermediate calculations to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line to 36300 (b) Units-of-output to 39525 to 38478 (c) Working hours (d) Sum-of-the-years'-digits to 61598 (e) Declining-balance (use 20% as the annual rate) to 66144
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started