On January 1, 2015, a machine was purchased for $108,000. The machine has an estimated...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2015, a machine was purchased for $108,000. The machine has an estimated salvage value of $7,200 and an estimated useful life of 5 years. The machine can operate for 120,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 24,000 hrs; 2016, 30,000 hrs; 2017, 18,000 hrs; 2018, 36,000 hrs; and 2019, 12,000 hrs. Compute the annual depreciation charges over the machines life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.) (1) Straight-line Method $ (2) Activity Method Year 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ (3) Sum-of-the-Years'-Digits Method Year 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ (4) Double-Declining-Balance Method Year 2015 $ 2016 $ 2017 $ 2018 $ 2019 $
Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the assets life applying each of the following methods. (Round answers to 0 decimal places, e.g. 45,892.) Straight-line Method, Sum-of-the-years'-digits method, and Double-declining-balance method for 2015, 2016, 2017, 2018, 2019, 2020
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
