Question

Problem 10-03A a-c (Part Level Submission) On January 1, 2020, Flint Company purchased the following two machines for use in its production process Machine A: The cash price of this machine was $46,000. Related expenditures included: sales tax $3,250, shipping costs $200, insurance during shipping $110, installation and testing costs $90, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Flint estimates that the useful life of the machine is 5 years with a $4,200 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Flint estimates that the useful life of the machine is 4 years with a Machine B: 9,850 salvage value remaining at the end of that time period.

Answer 1

Units of Activity Method Annual Depreciation : Depreciable Value / Life Depreciation Per unit: 170150/136120 1.25 Units of Activity Method Year Year 1 Year 2 Year 3 Year 4 Units|Depreciation 61250 47500 33750 27650 49000 38000 27000 22120

NOTE: For Double Decline Balance Method, Last year depreciation expenses should be adjusted with the salvage value. Please text for any clarity about the last year depreciation Expenses. Thank you very Much.