please, just find the right answer for the declining balance method. thanks! Rot
ID: 2453447 • Letter: P
Question
please, just find the right answer for the declining balance method. thanks!
Rottino Company purchased a new machine on October 1, 2015, at a cost of $112,700. The company estimated that the machine will have a salvage value of $14,500. The machine is expected to be used for 11,600 working hours during its 5-year life. Your answer is correct. Compute the depreciation expense under straight-line method for 2015. (Round answer to O decimal places, e.g. 2,125.) Your answer is correct. Compute the depreciation expense under units-of-activity for 2015, assuming machine usage was 1,600 hours. (Round per hour value to 2 decimal places, e.g. 21.25 and final answer to 0 decimal places, e.g. 2,125.) Your answer is incorrect. Try again. 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
Ans) Computation of Depreciation 2015 2016 $ 9,820 $ 35,352 Working Note:-1 Book Value = $ 112,700 Salvage Value = $ (14,500) Amount to be deprecate = $ 98,200 Life tof the machine = 5 Years Double rate 20 Double deciling Rate 40% October to December 2015 = Depreciation * 40%*3/12 98200*40/100*3/12 Total Depreciation for 2015 $ 9,820 Depreciation for 2016 = (Assets -Salvage value - Depreciation ) = 88380 Depreciation for 2016 = 88380*40% $ 35,352 Computation of Depreciation 2015 2016 $ 9,820 $ 35,352
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