A Company's Property Records Revealed the Following Information About Its

question 47

Essay

A company's property records revealed the following information about its plant assets:
$$\begin{array} { | l | r | r | r | r | c | } \hline \begin{array} { c } \text { Machine } \\\text { No. }\end{array} &{ \text { Cost } } & \begin{array} { c } \text { Salvage } \\\text { Value }\end{array} & \begin{array} { c } \text { Purchase } \\\text { Date }\end{array} & \begin{array} { c } \text { Estimated } \\\text { Life }\end{array} & \text { Depreciation Method } \\\hline 1 & \$ 82,000 & \$ 8,000 & 1 / 01 & \text { 4 years } & \text { Straight-line } \\\hline 2 & 46,000 & 3,600 & 7 / 01 & \text { 5 years } & \text { Double-declining balance } \\\hline\end{array}$$
Calculate the depreciation expense for each machine in Year 1 and Year 2 for the year ended December 31.
Machine 1:
Year 1 $\underline{\quad\quad\quad\quad}$ $\quad$ $\quad$ Year 2 $\underline{\quad\quad\quad\quad}$
Machine 2:
Year 1 $\underline{\quad\quad\quad\quad}$ $\quad$ $\quad$ Year 2 $\underline{\quad\quad\quad\quad}$

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Definitions:

Income Tax Allocation

The process of assigning income taxes to different departments, periods, or product lines in financial accounting.

Pretax Financial Income

The amount of income that a company has earned before any taxes have been deducted, as reported on the income statement.

Comprehensive

Including or dealing with all or nearly all elements or aspects of something.