Question

On January 1, 2018, the Allegheny Corporation purchased machinery for $150,000. The estimated service life of the machinery is 10 years and the estimated residual value is $7,000. The machine is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 43,000; units produced in 2019, 38,000). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate depreciation for 2018 and 2019 using straight line method. Choose Numerator: Straight-Line Depreciation 1 Choose Denominator: = = Annual Depreciation Expense Depreciation Expense Depreciation Expense 2018 2019 Required 1 Required 2 >

Answer 1

Solution 2018 2019 = $14,300 1. SLM = (conde selvage) := $14300 = (15900 - 400) -2. Sum of the years digit = Cost - Salvage Value) x Heads war = 143000 xhings - Sum of years = n(n+ill - $26,0,00 v rlo (10+11/2 1673" = 55 $143000 x - $23,400 715000 - 300 ml 3. Double Declining method = 2 x 150000 10 = 2.X 10 = $24000 = 8X e at of Carry value useful life iver - $ 39000 B

= 1501. (158000 -33,00 One Hundred percent decli- - ning method = 150% of Carry value I useful life of Asset = 1504. x 150500 = $29,500 . 10 = $10,125 15. :- 143,000 4:38,000 - 300,000 E $18,113 Units of Production = 143.800 x 43000 (cost of Asset - Salvage value \x Units 300,000 Estimated Production capability) = $20497 crow of foreign oloose นะ 0 1 - 0 เกม ม. 4 2541 se 1001re