Compute declining-balance and units-of-activity depreciation. "E9.27 (LO 6), AP Basic information relating to a new...
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Compute declining-balance and units-of-activity depreciation. "E9.27 (LO 6), AP Basic information relating to a new machine purchased by Gotham Company is presented in E9.7. Instructions Using the facts presented in E9.7, compute depreciation using the following methods in the year indicated. a. Declining-balance using double the straight-line rate for 2025 and 2026 . b. Units-of-activity for 2025 , assuming machine usage was 480 hours. (Round depreciation per unit to the nearest cent.) Deprcciationcost=900008000($82000Depreciationexp.=1082000=$82002oassor3months=820041=$12050depreciation2026=$8000 P9.7 (1.0 5), AN Blythe Corporation and Jacke Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe-tracing devices. Each company deprociates its plant assets using the straight-line approach. An investigation of their financial statements reveals the information shown below. Instructions a. For each company, calculate these values: 1. Retarn on assets. 2. Profit margin. 3. Asset turnover: b. Based on your calculations in part (a), comment on the relative effectiveness of the two companies in using their assets to generate sales. What factors complicate your ability to compare the two companies



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