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

question 85

Essay

A production machine which cost $2,200,000 is acquired on October 1,2016.Its estimated residual value is $200,000 and its expected life is 10 years or about 80,000 operating hours.During 2016,the machine was used to produce products for 3,000 operating hours during 2016 and 8,100 operating hours during 2017.Lorny does not use the half-year convention for depreciating any assets.
Calculate depreciation expense for 2015 and 2016 by each of the following methods:
(a)Straight-line method
(b)Double-declining balance method
(c)Units-of-output method

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Definitions:

Convergent Validity

The degree to which two measures of constructs that theoretically should be related, are in fact related.

Myers Briggs

A personality inventory based on Carl Jung's theories, categorizing individuals into 16 different personality types based on preferences in how they perceive the world and make decisions.

Psychological Types

A concept introduced by Carl Jung that categorizes individuals based on their preferences in processing information, making decisions, and energizing.

PAI

An abbreviation for Personality Assessment Inventory, a self-administered questionnaire designed to assess various psychological traits and disorders.