Depreciation    A machine costing $429,000 has an estimated residual value of $15,000 and an estimated service life of 12 years.  What is the annual depreciation for each of the first two years under the following methods?  Assume the company record a full year of depreciation in the year of purchase.  Round all answers to the nearest dollar. Double declining-balance Units of production.  Lifetime production is estimated at 500,000 units.  The machine produced 39,000 units in year one and 58,000 in year two. Straight-line depreciation method.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Depreciation 

 

A machine costing $429,000 has an estimated residual value of $15,000 and an estimated service life of 12 years.  What is the annual depreciation for each of the first two years under the following methods?  Assume the company record a full year of depreciation in the year of purchase.  Round all answers to the nearest dollar.

  1. Double declining-balance
  2. Units of production.  Lifetime production is estimated at 500,000 units.  The machine produced 39,000 units in year one and 58,000 in year two.
  3. Straight-line depreciation method.
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