A Company Purchased a Machine on January 1 of the Current

question 137

Short Answer

A company purchased a machine on January 1 of the current year for $750,000.Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours,with a salvage value of $75,000)using each of the below-mentioned methods .During the machine's 5-year life its hourly usage was:
3,000; 4,000; 5,000; 5,000; and 3,000 hours.
Double-
Units-of- Declining-
Year Straight-line Production Balance
Year 1 $__________ $___________ $___________
Year 2 __________ ___________ ___________
Year 3 __________ ___________ ___________
Year 4 __________ ___________ ___________
Year 5 __________ ___________ ___________
Total __________ ___________ ___________

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Definitions:

Credits

Accounting entries that increase liabilities or equity or that decrease assets.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transactions, received from activities such as sales or services.

Debiting

The act of recording an entry on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Alphabetical Order

A method of sorting by arranging items according to the sequence of the letters in the English alphabet.