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Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1.500 hours in 2017; 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumber has a December 31 year end

Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1.500 hours in 2017; 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumber has a December 31 year end

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1.500 hours in 2017: 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumber has a December 31 year end
Transcribed Image Text:Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1.500 hours in 2017: 2,400 hours in 2018: 2,000 hours in 2019, 2.200 hours in 2020; and 1,900 hours in 2021. Cullumber has a December 31 year end
Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg 2.75 and final answers to O decimal places, eg. 5,275) (1) Straight-line for 2017 through to 2021. 2017 expense $ 2018 expense $ 2019 expense $ 2020 expense 2021 expense (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. 2018 expense 2017 expense $ 2019 expense 2020 expense 2021 expense S 2018 expense $ 2019 expense 2020 expense 5001 mense $ (3) Units-of-production for 2017 through to 2021. $ 2017 expense $ S $ $ $ S $
Transcribed Image Text:Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg 2.75 and final answers to O decimal places, eg. 5,275) (1) Straight-line for 2017 through to 2021. 2017 expense $ 2018 expense $ 2019 expense $ 2020 expense 2021 expense (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. 2018 expense 2017 expense $ 2019 expense 2020 expense 2021 expense S 2018 expense $ 2019 expense 2020 expense 5001 mense $ (3) Units-of-production for 2017 through to 2021. $ 2017 expense $ S $ $ $ S $
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