PROBLEM 3 DEPRECIATION METHODS (30 POINTS) Smith Company purchased a Copy Machin

Question

PROBLEM 3 DEPRECIATION METHODS (30 POINTS) Smith Company purchased a Copy Machine at a cost of $36,000 on January 1.2014.The Copier have a salvage value of 4,000 at the end of its A years usetul life. During its useful life, the Copier is expected to be used 320,000 hours. Actual annual hours used was,2014 80,000; 2015, 100,000; 2016, 80,000; and 2017, 60,000. s, expeced to Instructions: Calculate the first two years of the depreciation using these 3 methods (al straieht-ine, t units ol activities, and (c) double declining balance.

Explanation / Answer

a) Straight line = (36000-4000/4) = 8000 per year

b) Units of activity = (36000-4000/320000) = 0.10 per hour

c) Double decline balance :

Depreciation expense 2014 8000 2015 8000 2016 8000 2017 8000 Total 32000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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