On May 31, 2014, Franklin Company purchased a machine for $205,000. The machine has useful life...

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Accounting

On May 31, 2014, Franklin Company purchased a machine for$205,000. The machine has useful life 5 years or 100,000 units with$5,000 salvage value. Franklin uses 14,000 units in 2014 and 38,000units in 2015. Compute depreciation expense for 2014 and 2015 andprepare the necessary JOURNAL ENTRIES at year end December 31 usingthe following methods:
1.   Straight-line
2.   Units of activity
3.   Double-Declining Balance

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Straight Line method Year Cost of asset Depreciable cost Depreciation rate Depreciation expenses Accumulated Depreciation Book value At Acquistion 205000 205000 20147 months 200000 2000 23333 23333 181667 2015 200000 2000 40000 63333 141667 Units of Activity Date Depreciable cost Depreciation per unit No of units See Answer

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