Tomisa Company Has a Machine with a Cost of $90,000

question 79

Essay

Tomisa Company has a machine with a cost of $90,000. It has a salvage value of $11,000 and a useful life of 8 years or 75,000 units of production. It was purchased on January 1, 2011. It produced 8,500 units in 2011. To the nearest dollar, what will be the depreciation expense for 2011 using:
A. straight-line depreciation?
B. double-declining-balance depreciation?
C. units-of-production depreciation?
$__________ Straight-line depreciation
$__________ Double-declining-balance depreciation
$__________ Units-of-production depreciation

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Definitions:

Activity Variance

The difference between the planned activity level and the actual activity level.

Planning Budget

A financial forecast or projection, detailing expected revenues and expenses within a future period.

Net Operating Income

The profit a company generates from its regular business operations, excluding expenses and revenues from non-operating activities.

Client-visits

The act of meeting with clients or potential clients, often for the purposes of discussing business opportunities, providing services, or strengthening relationships.