Calculate annual depreciation expense using the straight-line, units-of-production, and double-declining balance methods.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A machine costing $956,250 with a five-year useful life and a $95,625 salvage value is installed in the factory on January 1. The
factory manager estimates the machine will produce 25,500 units of product during its life. It actually produces the following units:
4,100 in Year 1: 5,100 in Year 2; 6,100 in Year 3; 6,100 in Year 4; and 4,100 in Year 5.
Calculate annual depreciation expense using the straight-line, units-of-production, and double-declining balance methods.
Year 1
Year 2
Year 3
Year 4
Year 5
Totals
Straight-line
Units-of-production
Double-declining
balance
Transcribed Image Text:A machine costing $956,250 with a five-year useful life and a $95,625 salvage value is installed in the factory on January 1. The factory manager estimates the machine will produce 25,500 units of product during its life. It actually produces the following units: 4,100 in Year 1: 5,100 in Year 2; 6,100 in Year 3; 6,100 in Year 4; and 4,100 in Year 5. Calculate annual depreciation expense using the straight-line, units-of-production, and double-declining balance methods. Year 1 Year 2 Year 3 Year 4 Year 5 Totals Straight-line Units-of-production Double-declining balance
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