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WILSON CO Wilson Co. purchased a machine for $600.000. Wilson paid $60.000 for installation and testing. Goods produced in testing process sold for $5.400.
WILSON CO Wilson Co. purchased a machine for $600.000. Wilson paid $60.000 for installation and testing. Goods produced in testing process sold for $5.400. Fees of $3.480 were paid for custom transactions. Transportation costs was paid by Wilson amounted $2.600. Interest costs during purchase were $1.700. Required: Determine the cost of the machine. AZTEK COMPANY Aztek Company purchased a truck on January 2, 2017 for $90,000 for cash. It was estimated that it had an estimated useful life of 5 years and the residual value was $10,000 at the end of its useful life. The estimated usage of the truck in terms of mileage was as follows: 1. year 96,000 miles 2. year 94,000 miles 3. year 92,000 miles 4. year 88,000 miles 5. year 80,000 miles TOTAL 450,000 miles Required: 1) Calculate annual depreciation throughout the 5 years, if the company uses; a) straight-line method of depreciation. b) double declining method of depreciation c) units of activity method of depreciation
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