Blossom Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $172,200. The company estimated that the machine would have a salvage value of $19,200 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 22,500 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places

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A: Depreciation:   It is a non-cash expense. This is the decrease in the value of a fixed asset because…

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A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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A: DEPRECIATION : A decrease in the value of an item over time, owing to wear and tear in particular.…

Q: depreciation expense on this asset

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A: Given information:

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A: Formula: Straight line method = ( Cost of Asset - Salvage value ) / Useful life

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Q: was the gain/ loss on the sale of the machine?

A: Solution   Prepared the Machinery Account for Calculate the Gain or Loss on sale of Machinery

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A: Depreciation :— It is the allocation of depreciable cost of assets over its useful life.    Straight…

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A: The question is based on the concept of Depreciation Accounting.

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Q: Calculate the amount of the loss

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A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

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A:

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A: 1. Following are the calculation of depreciation expense:

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.