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Your Task COMPLETE ON SPREAD SHEET SHOW FORMULAS Red Company purchased a machine on January 1, 2018. Cost $210,000 Residual value 24,000 Useful life in
Your Task COMPLETE ON SPREAD SHEET
SHOW FORMULAS
Red Company purchased a machine on January 1, 2018.
Cost $210,000
Residual value 24,000
Useful life in years 5 *
Useful life in hours 25,000
*Write the formulas assuming useful life in years will always be five years Useful life in hours 25,000 but that the other three amounts given may vary.
Determine the annual depreciation expense under each of four depreciation methods
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 | |
Hours used | 4,800 | 4,900 | 5,200 | 5,500 | 5,300 |
Straight line | |||||
Units of production | |||||
Double-declining balance | |||||
Sum-of-the-years-digits |
Determine the machine's book value at the end of each year under each of the four depreciation methods
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 | |
Straight line | |||||
Units of production | |||||
Double-declining balance | |||||
Sum-of-the-years-digits |
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