Depreciation Methods On January 2, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $400,000, and its estimated useful life was four years or 1,500,000 cuttings, after which it could be sold for $25,000. Estimated annual production in cuttings Year 1 300,000 Year 2 525,000 Year 3 Year 4 390,000 285,000 Calculate the depreciation expense for each year of the machine's useful life under each of the following depreciation methods. Do not round intermediate calculations. Round final answer to the nearest dollar. Year 1 Year 2 Year 3 Year 4 Total a. Straight-line $ 0 $ 0 $ 0 $ 0 $ 0 b. Double-declining balance $ 0 $ 0 $ 0 $ 0 $ 0 c. Units of production $ 0 $ 0 $ 0 $ 0 $ 0

Depreciation Methods On January 2, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $400,000, and its estimated useful life was four years or 1,500,000 cuttings, after which it could be sold for $25,000. Estimated annual production in cuttings Year 1 300,000 Year 2 525,000 Year 3 Year 4 390,000 285,000 Calculate the depreciation expense for each year of the machine's useful life under each of the following depreciation methods. Do not round intermediate calculations. Round final answer to the nearest dollar. Year 1 Year 2 Year 3 Year 4 Total a. Straight-line $ 0 $ 0 $ 0 $ 0 $ 0 b. Double-declining balance $ 0 $ 0 $ 0 $ 0 $ 0 c. Units of production $ 0 $ 0 $ 0 $ 0 $ 0

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Answer completely.
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Depreciation Methods
On January 2, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $400,000, and its
estimated useful life was four years or 1,500,000 cuttings, after which it could be sold for $25,000.
Estimated annual production
in cuttings
Year 1
300,000
Year 2
525,000
Year 3
Year 4
390,000
285,000
Calculate the depreciation expense for each year of the machine's useful life under each of the following depreciation methods.
Do not round intermediate calculations. Round final answer to the nearest dollar.
Year 1
Year 2
Year 3
Year 4
Total
a. Straight-line
$
0 $
0 $
0 $
0 $
0
b. Double-declining balance $
0 $
0 $
0 $
0 $
0
c. Units of production
$
0 $
0 $
0 $
0 $
0

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