On January 2,2009,Topanga Company Purchased a Machine for $90,000

question 98

Essay

On January 2,2009,Topanga Company purchased a machine for $90,000.The machine has a five-year estimated useful life and a $6,000 estimated residual value.In addition,the company expects to use the machine 200,000 hours.Assuming that the machine was used 35,000 hours during 2010,complete the following chart.If a figure cannot be determined,indicate so by placing an X in the box.(Show your work.)
$$\begin{array} { | l | c | l } \hline \text { Method } & \begin{array} { c } \text { Depreciation Expense far } \\\text { 2010 }\end{array} & \text { Carryine Value at 12/31/10 } \\\hline \text { Straight-line } & & \\\hline \text { Production } & & \\\hline \text { Dauble-decliring-balance } & & \\\hline\end{array}$$

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Definitions:

Present Value

The now value of a future cash sum or chain of cash flows, with a specified rate of return.

Loan Payments

Regular payments made to repay borrowed money, typically including both principal and interest components.

Ordinary General Annuity

A sequence of uniform payments made at consistent intervals, where interest is calculated and added at each period's conclusion.

Present Value

Present Value is a financial concept that represents the current worth of an amount that is to be received in the future, discounted to reflect the time value of money and interest rates.