Sinclair Company Purchased a New Machine on January 1, 2013

question 44

Essay

Sinclair Company purchased a new machine on January 1, 2013, at a cost of $200,000. The machine is expected to have an eight-year life and a $30,000 salvage value. The machine is expected to produce 720,000 finished products during its eight-year life. Production during 2013 was 70,000 units and during 2014 was 110,000 units.
Required:
Determine the amount of depreciation expense to be recorded on the machine for the years 2013 and 2014 under each of the following methods:
1) Straight-line
2) Units of production
3) Double-declining balance

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Definitions:

Internet Access

The ability to connect to and use the internet.

Media Concentration

The consolidation of media ownership into the hands of a few large corporations, potentially limiting diversity of viewpoints and competition.

Media Monopolization

Refers to the concentration of media ownership in the hands of a few individuals or corporations, reducing diversity in the viewpoints and information available to the public.

Democratic

Pertaining to a system of government in which power is vested in the people, who rule either directly or through freely elected representatives.