Essay
A production machine which cost $2,200,000 is acquired on October 1, 2018. Its estimated residual value is $200,000 and its expected life is 10 years or about 80,000 operating hours. During 2018, the machine was used to produce products for 3,000 operating hours during 2018 and 8,100 operating hours during 2019. Lorny does not use the half-year convention for depreciating any assets.
Calculate depreciation expense for 2018 and 2019 for each of the following methods:
(a) Straight-line method
(b) Double-declining balance method
(c) Units-of-output method
Correct Answer:
Verified
a.
2018: ($2,200,000 -$200,000) / 10 yea...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
2018: ($2,200,000 -$200,000) / 10 yea...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q103: Briefly explain the half-year convention for recognizing
Q104: Frank's Bus Lines exchanged four of
Q105: Only finite-life intangible assets are subject to
Q106: Scrap value reduces the depreciable base of
Q107: Property, plant, and equipment include both tangible
Q109: Fixed asset turnover ratio is computed as
Q110: Following U.S. GAAP, companies commonly report the
Q111: Assets that qualify for interest cost capitalization
Q112: Gabraile Company acquired Itsy Inc. for a
Q113: Lunar Products purchased a computer for $13,000