A machine costing $55,000.00 was purchased January 2, 2021. The machine is expected to have a useful life of 5years or can be used for 17,000 operating hours. The estimated salvage value is $4,000.00 Required:Compute depreciation, accumulated depreciation and net book value for all 5 year under the following methods Double Declining Balance YearDepreciationAccumulatedNet Book ExpenseDepreciationValue 122,000 22,000 33,000 213,200 35,200 19,800 37,920 29,920 25,080 410,032 39,952 15,048 56,019 45,941 9,029 Units of Usage (round unit of usage to two decimal places) YearHours ofDepreciationAccumulatedNet Book UsageExpenseDepreciationValue 13,800 23,600 33,900 43,700 53,500 I have filled it upon some areas but i'm not sure about the anwer .Could you explain in details so can understand please ?

DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…

Answered: A machine costing $55,000.00 was…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A machine costing		$55,000.00	was purchased January 2, 2021.
The machine is expected to have a useful life of			5	years
or can be used for		17,000	operating hours.
The estimated salvage value is		$4,000.00

Required:	Compute depreciation, accumulated depreciation and net book value
	for all 5 year under the following methods

Double Declining Balance

Year	Depreciation	Accumulated	Net Book
	Expense	Depreciation	Value
1	22,000	22,000	33,000
2	13,200	35,200	19,800
3	7,920	29,920	25,080
4	10,032	39,952	15,048
5	6,019	45,941	9,029

Units of Usage (round unit of usage to two decimal places)

Year	Hours of	Depreciation	Accumulated	Net Book
	Usage	Expense	Depreciation	Value
1	3,800
2	3,600
3	3,900
4	3,700
5	3,500

I have filled it upon some areas but i'm not sure about the anwer .Could you explain in details so can understand please ?

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