A Production Machine Which Cost $2,200,000 Is Acquired on October

question 108

Essay

A production machine which cost $2,200,000 is acquired on October 1, 2018. Its estimated residual value is $200,000 and its expected life is 10 years or about 80,000 operating hours. During 2018, the machine was used to produce products for 3,000 operating hours during 2018 and 8,100 operating hours during 2019. Lorny does not use the half-year convention for depreciating any assets.
Calculate depreciation expense for 2018 and 2019 for each of the following methods:
(a) Straight-line method
(b) Double-declining balance method
(c) Units-of-output method

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Definitions:

Psychological Influences

Factors that affect consumer behavior and decision-making processes, including perceptions, attitudes, motivations, and personality traits.

Consumer Purchase Decision Process

The stages a consumer goes through before, during, and after making a purchase, including recognition of need, information search, evaluation, purchase, and post-purchase evaluation.

Sociocultural Influences

Factors that affect consumer behavior and trends, which include social, cultural, and ethnic backgrounds.

Consumer Purchase Decision Process

The stages a buyer goes through, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.