A Company Purchased a Machine on January 1 of the Current

question 160

Essay

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.
$$\begin{array} { l | l | l | l } & \text { Straight-line } & \text { Uhits-of-production } & \text { Double-declining balance } \\\hline \text { Year I } & & & \\\hline \text { Year 2 } & & & \\\hline \text { Yaar 3 } & & & \\\hline \text { Year 4 } & & & \\\hline \text { Year 5 } & & & \\\hline \text { Totals } & & &\end{array}$$

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Definitions:

Trust

The confidence in the reliability, truth, ability, or strength of someone or something.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Collaboration

The action of working with someone to produce or create something.

Beneficial

Having a positive effect; helpful or advantageous to individuals or situations.