E10.5 (LO 1) (Depreciation Computations-Four Methods) Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31. Instructions Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. a. Straight-line depreciation for 2025. b. Activity method for 2025, assuming that machine usage was 800 hours. c. Sum-of-the-years'-digits for 2026. d. Double-declining-balance for 2026.

E10.5 (LO 1) (Depreciation Computations-Four Methods) Robert Parish Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $117,900. The company estimated that the machine would have a salvage value of $12,900 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31. Instructions Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. a. Straight-line depreciation for 2025. b. Activity method for 2025, assuming that machine usage was 800 hours. c. Sum-of-the-years'-digits for 2026. d. Double-declining-balance for 2026.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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