Jensen Company purchased a new machine on October 1, 2017, at acost of $104,000....

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Accounting

Jensen Company purchased a new machine on October 1, 2017, at acost of $104,000. The company estimated that the machine has asalvage value of $8,000. The machine is expected to be used for80,000 working hours during its 8-year life.
Instructions
Compute depreciation using the following methods in the yearindicated.
(a)     Straight-line for 2017 and 2018,assuming a December 31 year-end.
(b)     Declining-balance using double thestraight-line rate for 2017 and 2018.
(c)     Units-of-activity for 2017, assumingmachine usage was 2,900 hours. (Round depreciation per unit to thenearest cent.)

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Working Note Machine Usage period 3month 1st Oct 2017 to 31st Dec 2017 Straightline for 2017 and 2018 assuming a December 31 yearend Depreciation for 2017 Cost Salvage Useful Life 104000 8000 8 960008 See Answer

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In: AccountingJensen Company purchased a new machine on October 1, 2017, at acost of $104,000. The...Jensen Company purchased a new machine on October 1, 2017, at acost of $104,000. The company estimated that the machine has asalvage value of $8,000. The machine is expected to be used for80,000 working hours during its 8-year life.InstructionsCompute depreciation using the following methods in the yearindicated.(a) Straight-line for 2017 and 2018,assuming a December 31 year-end.(b) Declining-balance using double thestraight-line rate for 2017 and 2018.(c) Units-of-activity for 2017, assumingmachine usage was 2,900 hours. (Round depreciation per unit to thenearest cent.)