E9.6 (LO 2), AP Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The compan estimated that the machine will have a salvage value of S12,000. The machine is expected to be used for 10,000 work during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2022. b. Units-of-activity for 2022, assuming machine usage was 1,700 hours. c. Declining-balance using double the straight-line rate for 2022 and 2023. a. Straight-line method Cost Less: Salvage value Depreciable cost Useful life (years) Annual depreciation 2022 Depreciation: Annual Depreciation Months machine in use 2022 partial year depreciation b. Units-of-activity method Cost Less: Salvage value Depreciable cost Useful life (hours) Depreciable cost/hour 2022 Depreciation: Depreciable cost/hour Hours machine used 2022 depreciation expense c. Declining-balance method: Straight-line rate Double the straight-line rate 2022 Depreciation: Cost Double the straight-line rate 2022 full year depreciation Number of months in use

E9.6 (LO 2), AP Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The compan estimated that the machine will have a salvage value of S12,000. The machine is expected to be used for 10,000 work during its 5-year life. Instructions Compute the depreciation expense under the following methods for the year indicated. a. Straight-line for 2022. b. Units-of-activity for 2022, assuming machine usage was 1,700 hours. c. Declining-balance using double the straight-line rate for 2022 and 2023. a. Straight-line method Cost Less: Salvage value Depreciable cost Useful life (years) Annual depreciation 2022 Depreciation: Annual Depreciation Months machine in use 2022 partial year depreciation b. Units-of-activity method Cost Less: Salvage value Depreciable cost Useful life (hours) Depreciable cost/hour 2022 Depreciation: Depreciable cost/hour Hours machine used 2022 depreciation expense c. Declining-balance method: Straight-line rate Double the straight-line rate 2022 Depreciation: Cost Double the straight-line rate 2022 full year depreciation Number of months in use

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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