Exercise 10-6 Rottino Company purchased a new machine on October 1, 2017, at a c

Question

Exercise 10-6 Rottino Company purchased a new machine on October 1, 2017, at a cost of $138,000. The company estimated that the machine will have a salvage value of $11,300. The machine is expected to be used for 11,000 working hours during its 5-year life xYour answer is incorrect. Try again Compute the depreciation expense under straight-line method for 2017. (Round answer to o decimal places, e.g. 2,125.) 2017 Depreciation expense 6469.80 LINK TO TEXT Your answer is incorrect. Try again. Compute the depreciation expense under units-of-actvity for 2017, assuming machine usage was 1,630 hours. (Round answer to o decimal places, e.g. 2,125.) 2017 Depreciation expense LINK TO TEXT

Explanation / Answer

Depreciaiton expense(Straight line) (Cost - salvage value)/Estimated useful life (138000-11300)/5 25340 1) Depreciation for three months from oct 2017 to dec 31,2017 25340/12 *3 6335 answer 2) Depreciation under units of activity (138000-11300)/11000 11.51818 Depreciation expense = 11.51818*1630 18775 answer 3) Double declining rate 1/5*2 40% Depreciation for 2017 (138000*40%)*3/12 = 13800 Depreciation for 2018 (138000-13800)*40%= 49680

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.