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 per hour = (Cost of the assets - Salvage value) / Total estimated operating machine…

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A: International Financial Reporting Standards (IFRS): International Financial Reporting Standards is a…

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A: Given information:

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A: Depreciation is an outlay which is reported in the books to reduce the asset's worth in the books…

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A: (a) Straight-line depreciation for 2017.

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A: Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8+9 = 45 years

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A: Depreciation under SLM method =(original cost - residual value) /Useful life

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 is not a cash expense. The straight-line technique allocates depreciation equally…

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A:

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A:

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A:

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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.