Exercise 9-6 Rottino Company purchased a new machine on October 1, 2015, at a co

Question

Exercise 9-6 Rottino Company purchased a new machine on October 1, 2015, at a cost of $119,900. The company estimated that the machine will have a salvage value of $11,600. The machine is expected to be used for 11,700 working hours during its 4-year life. Compute the depreciation expense under straight-line method for 2015. (Round answer to 0 decimal places, e.g. 2,125.) Compute the depreciation expense under units-of-activity for 2015, assuming machine usage was 1,900 hours. (Round per hour value to 2 decimal places, e.g. 21.25 and final answer to O decimal places, e.g. 2,125.) Rottino Company purchased a new machine on October 1, 2015, at a cost of $119,900. The company estimated that the machine will have a salvage value of $11,600. The machine is expected to be used for 11,700 working hours during its 4-year life. Compute the depreciation expense under straight-line method for 2015. (Round answer to 0 decimal places, e.g. 2,125.) Compute the depreciation expense under units-of-activity for 2015, assuming machine usage was 1,900 hours. (Round per hour value to 2 decimal places, e.g. 21.25 and final answer to O decimal places, e.g. 2,125.) Compute the depreciation expense under declining-balance using double the straight-line rate for 2015 and 2016. (Round answers to O decimal places, e.g. 2,125.)

Explanation / Answer

                                          119,900          11,600 Oct 1 2015 After salvage value       108,300 Life 4 years Per year depreciation 27075 2015 1 quarter depreciation 6768.75 Total Hours          11,700 Per hour depreciation              9.26 Depreciation for 1900 hours    17,587.18

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