On January 2, 2013, Topanga Company purchased a machine for $90,000. The machine

Question

On January 2, 2013, Topanga Company purchased a machine for $90,000. The machine has a five-year estimated useful life and a $6,000 estimated residual value. In addition, the company expects to use the machine 200,000 hours. Assuming that the machine was used 35,000 hours during 2014, complete the following chart. If a figure cannot be determined, indicate so by placing an “X” in the box. (Show your work.)

Method

Depreciation Expense
for 2014

Carrying Value
at 12/31/14

Method

Depreciation Expense
for 2014

Carrying Value
at 12/31/14

Explanation / Answer

Cost Computation Depreciation Carrying Value A 90000 = (90000-6000)/5 16800 56400 B 90000 =+((90000-6000)/200000)*35000 14700 75300 C 90000 21600 32400 Year Rate Cost Depreciation Carrying Value 2013 40% 90000 36000 54000 2014 40% 54000 21600 32400

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