On January 1,2019 a Machine Costing $330,000 with a 4-Year

question 155

Essay

On January 1,2019 a machine costing $330,000 with a 4-year service life and an estimated $3,000 residual value was purchased.It was also estimated that the machine would produce 50,000 units during its life.The actual units produced during its first 2 years of operation were 9,000 and 10,000 respectively.Calculate the amount of depreciation expense for the 2019 and 2020 under each of the following assumptions:
(a)Straight-line.
(b)Double-declining-balance.
(c)Units-of-production.

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Definitions:

Service of Process

The procedure by which a party to a legal action gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body.

Summons

A legal document issued by a court and addressed to a defendant that notifies him or her of the lawsuit and how and when to respond to the complaint. A summons may be used in both civil and criminal proceedings.

Complaint

A formal written document that begins a civil lawsuit; contains the plaintiff’s list of allegations against the defendant along with the damages the plaintiff seeks.

Defendant

An entity, whether a person, corporation, or institution, facing legal action in a court.