El1.5 (LO1,2) (Depreciation Computations-Four Methods) Maserati SpA purchased a new chine for its assembly process on August 1, 2019. The cost of this machine was €150,000. The company estimated that the machine would have a residual value of €24,000 at the end of its service life. Its life 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 shouldh considered unrelated. a. Straight-line depreciation for 2019. b. Activity method for 2020, assuming that machine usage was 800 hours. c. Sum-of-the-years'-digits for 2020. d. Double-declining-balance for 2020.
El1.5 (LO1,2) (Depreciation Computations-Four Methods) Maserati SpA purchased a new chine for its assembly process on August 1, 2019. The cost of this machine was €150,000. The company estimated that the machine would have a residual value of €24,000 at the end of its service life. Its life 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 shouldh considered unrelated. a. Straight-line depreciation for 2019. b. Activity method for 2020, assuming that machine usage was 800 hours. c. Sum-of-the-years'-digits for 2020. d. Double-declining-balance for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi,
Can you please answer E11.5?
Also, C was answered but I do not understand how you get $42,000 & $336,000 or 7/12? Can you please advise? Thank you.
Transcribed Image Text:El1.5 (LO1,2) (Depreciation Computations-Four Methods) Maserati SpA purchased a new
chine for its assembly process on August 1, 2019. The cost of this machine was €150,000. The company
estimated that the machine would have a residual value of €24,000 at the end of its service life. Its life
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 shouldh
considered unrelated.
a. Straight-line depreciation for 2019.
b. Activity method for 2020, assuming that machine usage was 800 hours.
c. Sum-of-the-years'-digits for 2020.
d. Double-declining-balance for 2020.
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