Exercise 9-20 (Part Level Submission) Sunland Company purchased a new machine on

Question

Exercise 9-20 (Part Level Submission) Sunland Company purchased a new machine on October 1, 2017, at a cost of $86 600. The company estimated that machine is expected to be used for 65,700 working hours during its 8-year life. e machine as a salvage vau r The Compute depreciation using the following methods in the year indicated (a) Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to O decimal places, e.g. 125) 2017 2018 Depreciation using the Declining-balance method LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE

Explanation / Answer

1.) Depreciation in 2017 = (Cost of Machine-Salvage value)/(Useful Life)*3/12(October to december)

= (86600-8400)/8*3/12 = $2443.75 = $2444

2.) Depreciation in 2018 = ( Deprecited value of machine-salvage value)/Useful Life * 12/12 ( Whole year)

=(84156-8400)/8*12/12=$9469.5 = $9470

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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