A Company Purchased a Machine on January 1 of the Current

question 35

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).During the machine's 5-year life its hourly usage was: 3,000; 4,000; 5,000; 5,000; and 3,000 hours.
$$\begin{array} { | c | l | l | l | } \hline \text { Year } & \text { Straight-Line } & \begin{array} { c } \text { Units-of- } \\\text { Production }\end{array} & \begin{array} { c } \text { Double- } \\\text { Declining- } \\\text { Balance }\end{array} \\\hline \text { Year 1 } & \$ & \$ & \$ \\\hline \text { Year 2 } & & & \\\hline \text { Year 3 } & & & \\\hline \text { Year 4 } & & & \\\hline \text { Year 5 } & & & \\\hline \text { Totals } & & & \\\hline\end{array}$$

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Definitions:

True Ability

An individual's actual skill or aptitude in a certain area, dissociated from situational factors that might affect performance.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can adversely affect performance and behavior.

Black Students

Students of African descent who are part of an educational system.

Test Performance

Refers to how well an individual does on an assessment of their knowledge, skills, abilities, or physical fitness.