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Ivanhoe Limited purchased a machine on account on April 1, 2021, at an invoice price...

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Accounting

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Ivanhoe Limited purchased a machine on account on April 1, 2021, at an invoice price of $331,760. On April 2, it paid $2,070 for delivery of the machine. A one-year, $4,000 insurance policy on the machine was purchased on April 5. On April 19, Ivanhoe paid $8,490 for installation and testing of the machine. The machine was ready for use on April 30 . Ivanhoe estimates the machine's useful life will be five years or 6,321 units with a residual value of $86,390. Assume the machine produces the following numbers of units each year: 965 units in 2021; 1,512 units in 2022; 1,482 units in 2023; 1,171 units in 2024; and 1,191 units in 2025. Ivanhoe has a December 31 year end. (a) Determine the cost of the machine. Cost of the machine Calculate the annual depreciation and total depreciation over the asset's life using: (Round the depreciation cost per unit to 2 decimal places. Round answers to 0 decimal places, e.g. 5,275.) (1) Straight-line method (2) Double-diminishing-balance method (2) Double-diminishing-balance method (3) Units-of-production method

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