Macon Assembly Company Purchased a Machine on January 2, 20X3

question 65

Essay

Macon Assembly Company purchased a machine on January 2, 20X3, by paying cash of $85,000. The machine has an estimated useful life of five years (or the production of 200,000 units) and an estimated residual value of $5,000. Required:
1. Determine depreciation expense (to the nearest dollar) for each year of the machine's useful life under (a). straight-line depreciation; and (b). the declining-balance method with a 200% acceleration rate.
2. What is the book value of the machine after three years with the declining-balance method and a 200% acceleration rate?
3. What is the book value of the machinery after three years with straight-line depreciation.
4. If the machine was used to produce and sell 48,000 units in 20X3, what would the depreciation expense be under the units of production method?

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Definitions:

Confederates

Individuals or entities aligned with or supportive of the Confederate States of America, a group of southern states that seceded from the United States leading to the American Civil War from 1861 to 1865.

Execution

Execution refers to the carrying out of a sentence of death on a person convicted of a capital crime, or it can also mean the act of performing a plan, order, or directive.

Ending Slavery

The process, legislative acts, and movements aimed at abolishing the practice of holding individuals in bondage or servitude against their will.