On January 1, 2018, a machine was purchased for $102,500. The machine has an estimated...
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Accounting
On January 1, 2018, a machine was purchased for $102,500. The machine has an estimated salvage value of $7,580 and an estimated useful life of 5 years. The machine can operate for 113,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 22,600 hrs; 2019, 28,250 hrs; 2020, 16,950 hrs; 2021, 33,900 hrs; and 2022, 11,300 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 | ||||
2018 | $ | |||
2019 | $ | |||
2020 | $ | |||
2021 | $ | |||
2022 | $ | |||
3. | Sum-of-the-Years'-Digits Method | |||
Year | ||||
2018 | $ | |||
2019 | $ | |||
2020 | $ | |||
2021 | $ | |||
2022 | $ | |||
4. | Double-Declining-Balance Method | |||
Year | ||||
2018 | $ | |||
2019 | $ | |||
2020 | $ | |||
2021 | $ | |||
2022 | $ |
eTextbook and Media
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.)
Year | Straight-line Method | Sum-of-the-years'-digits method | Double-declining-balance method | |||
2018 | $ | $ | $ | |||
2019 | ||||||
2020 | ||||||
2021 | ||||||
2022 | ||||||
2023 |
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