Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000 The machine is expected to have an eight year life and a $15,000 salvage value The machine is expected to produce 675,000 finished products during its eight year life Smith produced 70,000 units in 2012 and 110,000 uni...

2012 2013 a Straightline method 16875 16875 b Units of production method 14040 22005 c Doubledeclini ...

Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine

Question:

Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 . The machine is expected to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in 2012 and 110,000 units during 2013.
Required:Determine the amount of depreciation expense to be recorded on the machine for the years 2012 and 2013 under each of the following methods:

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...