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Wildhorse Ltd. purchased a new machine on April 4, 2020, at a cost of $180,000. The company estimated that the machine would have a
Wildhorse Ltd. purchased a new machine on April 4, 2020, at a cost of $180,000. The company estimated that the machine would have a residual value of $18,000. 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 2020; 1,900 hours in 2021: 2,500 hours in 2022; 1,900 hours in 2023; and 2.100 hours in 2024. Wildhorse has a December 31 year end. (a) 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 2020 through to 2024. 2020 expense $ 2021 expense 2022 expense 2023 expense 2024 expense 2020 expense 2021 expense 2022 expense (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. 2024 expense $ $ $ 2022 expense $ 2023 expense 2023 expense $ 2024 expense $ $ $ (3) Units-of-production for 2020 through to 2024. 2020 expense $ $ 2021 expense $ $ $ $
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Answer To calculate the depreciation for the machine under each of the given methods we need to determine the depreciation expense for each year Here are the calculations a 1 Straightline method Depre...Get Instant Access to Expert-Tailored Solutions
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