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XYZ Company purchased a new machine on October 1, 2022, at a cost of $150,000. The company estimated that the machine will have a salvage
XYZ Company purchased a new machine on October 1, 2022, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. The accounting period ends on Dec, 31.
Compute the depreciation expense under the following methods for the year indicated.
- Straight-line for 2022.
- Units-of-activity for 2022, assuming machine usage was 1,800 hours.
- Straight-line for 2027.
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