Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machinewill have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life.(a)Your answer is correct.Compute the depreciation expense under straight-line method for 2022.2022Depreciation expense2$5000eTextbook and MediaAttempts: unlimited Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,500 hours. (Rounddepreciable cost per unit to 2 decimal places, e.g. O.50 and final answer to O decimal places, e.g. 2,125.)2022Depreciation expense2$15000eTextbook and MediaAttempts: unlimited(c)X Your answer is incorrect.Compute the depreciation expense under declining-balance using double the straight-line rate for 2022 and 2023.20222023Depreciation expense$15000$15000eTextbook and Media

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Description: Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machinewill have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life.(a)Yo

Double declining depreciation rate = Straight line depreciation rate x 2 = (100/5 years) x 2 = 40%

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Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Cullumber Company purchased a new machine on October 1, 2022, at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

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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