Problem 11-11 (Part Level Submission) On January 1, 2015, a machine was purchase

Question

Problem 11-11 (Part Level Submission) On January 1, 2015, a machine was purchased for $105,300. The machine has an estimated salvage value of $7,020 and an estimated useful life of 5 years. The machine can operate for 117,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 23,400 hrs; 2016, 29,250 hrs; 2017, 17,550 hrs; 2018, 35,100 hrs; and 2019, 11,700 hrs. Your answer is incorrect. Try again. Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e g 45,892.? (1) Straight-line Method (2) Activity Method Year 2015 14742 2016 19656 2017 19656 2018 19656 2019 19656 (3) Sum-of-the-Years'-Digits Methoo Year 2015 24570 2016 27846 2017 21294 2018 14742 2019 8190

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount 1) Straight line method = (105300 - 7020)/5                  19,656.00 2) Activity rate = (105300 - 7020)/117,000                        0.8400 Activity method Year No of hours Rate Depreciation                                                                             2,015.00                  23,400.00                            0.84                       19,656.00                                                                             2,016.00                  29,250.00                            0.84                       24,570.00                                                                             2,017.00                  17,550.00                            0.84                       14,742.00                                                                             2,018.00                  35,100.00                            0.84                       29,484.00                                                                             2,019.00                  11,700.00                            0.84                         9,828.00                       98,280.00 3) sum of the years' digits depreciation calculation is = n(n+1)/2 = 5(5+1)/2 = 5*6/2 = 30/2 = 15 Year Depreciation WN                                                                             2,015.00                  32,760.00 98,280/15*5                                                                             2,016.00                  26,208.00 98,280/15*4                                                                             2,017.00                  19,656.00 98,280/15*3                                                                             2,018.00                  13,104.00 98,280/15*2                                                                             2,019.00                    6,552.00 4,400/10 * 1                  98,280.00 4) Life   5 Years Double decling balance method rate = 20%*2 40% Particulars 2015 2016 2016 2016 2016 Opening Balance               105,300.00                  63,180.00                       37,908.00                 22,744.80                13,646.88 Depreciation at 40%                  42,120.00                  25,272.00                       15,163.20                   9,097.92                  6,626.88 Closing balance                  63,180.00                  37,908.00                       22,744.80                 13,646.88                  7,020.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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