CP 8‐4 Mayr Inc. purchased a machine for its factory on June 6, 2019 for $110,000. The machine is expected to have an estimated useful life of ten years with a salvage value of $10,000. Assume the company uses the ½ year rule to calculate depreciation expense in the year of acquisition and disposal. Required: Compute the depreciation for 2019 and 2020 using 1. The straight‐line method 2. The double‐declining balance method.
CP 8‐4 Mayr Inc. purchased a machine for its factory on June 6, 2019 for $110,000. The machine is expected to have an estimated useful life of ten years with a salvage value of $10,000. Assume the company uses the ½ year rule to calculate depreciation expense in the year of acquisition and disposal. Required: Compute the depreciation for 2019 and 2020 using 1. The straight‐line method 2. The double‐declining balance method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CP 8‐4
Mayr Inc. purchased a machine for its factory on June 6, 2019 for
$110,000. The machine is expected to have an estimated useful life of
ten years with a salvage value of $10,000. Assume the company uses
the ½ year rule to calculate depreciation expense in the year of
acquisition and disposal.
Required: Compute the depreciation for 2019 and 2020 using
1. The straight‐line method
2. The double‐declining balance method.
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