Genesis Acquires a Machine for $177,600

question 49

Essay

Genesis acquires a machine for $177,600.It expects the machine to last six years and to operate for 30,000 hours during that time.Estimated salvage value is $9,600 at the end of the machine's useful life.Calculate the depreciation charge for each of the first three years using each of the following methods:
a. The straight-line (time) method.
b. The straight-line (use) method, with the following operating times: first year, 4,500 hours; second year, 5,000 hours; third year, 5,500 hours.

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Definitions:

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