Question
Wania Company purchases a factory machine at a cost of $18,000 on January 1, 2017. DuPage expects the machine to have a salvage value of
Wania Company purchases a factory machine at a cost of $18,000 on January 1, 2017.
DuPage expects the machine to have a salvage value of $2,000 at the end of its 4-year useful
life.
During its useful life, the machine is expected to be used 170,000 hours. Actual annual
hourly use was 2017, 45,000; 2018, 60,000; 2019, 35,000; and 2020, 30,000.
a. Prepare depreciation schedules using straight line method, units of activity and
declining- balance method of depreciation
b. Provide journal entry to record depreciation for year 2020 under each method.
c. Show the amount that will be shown in the balance sheet in year 2020 under each method.
d. Compare depreciation methods as to how they can effect net income & taxes of the company?
you can use by Excel of question A.
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