Dersch Co Purchased a Machine on January 1, 2019, for $2,500,000

question 31

Essay

Dersch Co. purchased a machine on January 1, 2019, for $2,500,000. Using the table below, calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 50,000 hours with a residual value of $150,000). During the machine's life, it was used 15,000; 14,000; 10,000; 9,000; and 6,000 hours.
$$\begin{array} { | c | c | c | c | } \hline & { \text { (a) } } & \text { (b) } & { \text { (c) } } \\\hline \text { Year } & \text { straight Line } & \text { Units d Praductim } & \text { Declining Balance } \\\hline 2019 & \$ 470,000 & \$ 705,000 & \$ 1,000,000 \\\hline 2020 & 470,000 & 658,000 & 600,000 \\\hline 2021 & 470,000 & 470,000 & 360,000 \\\hline 2022 & 470,000 & 423,000 & 216,000 \\\hline 2023 & 470,000 & 54,000 & 44,400 \\\hline \text { Totals } & \$ 2,350,000 & \$ 2,310,000 & \$ 2,220,400 \\\hline\end{array}$$

Understand the basic principles of secured transactions and the significance of security interests.

Differentiate between perfected and unperfected security interests and their priority.

Identify the rights and remedies available to secured parties upon a debtor's default.

Understand the concept and application of redemption rights in secured transactions.

---

Definitions:

Volatile Stock

Shares of a company that exhibit significant fluctuations in price over short periods of time due to various factors.

Risky Stock

Shares of a company with a high level of risk, often due to volatility, uncertainty, or both, potentially leading to high returns or losses.

Diversified Portfolio

An investment portfolio constructed with a mix of assets to reduce exposure to risk associated with any single asset or asset class.

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic shifts or political events.