Jones Company purchased a machine for $400,000. The company expects the service life of the machine to be 5 years. During that time, it is expected that the machine's useful life will be 200,000 hours. The anticipated salvage value is $30,000. The machine was disposed of after five years of use. Actual hours used during the five years of the asset's life was: • Year 1: 50,000 hours used • Year 2: 40,000 hours used • Year 3: 35,000 hours used • Year 4: 45,000 hours used • Year 5: 30,000 hours used Prepare the 5-year depreciation schedule for the machine. Find the depreciation expense and the book value of the machine for each of the 5 years using the following depreciation methods. a. Straight Line b. Declining Balance (Double-Declining)

Jones Company purchased a machine for $400,000. The company expects the service life of the machine to be 5 years. During that time, it is expected that the machine's useful life will be 200,000 hours. The anticipated salvage value is $30,000. The machine was disposed of after five years of use. Actual hours used during the five years of the asset's life was: • Year 1: 50,000 hours used • Year 2: 40,000 hours used • Year 3: 35,000 hours used • Year 4: 45,000 hours used • Year 5: 30,000 hours used Prepare the 5-year depreciation schedule for the machine. Find the depreciation expense and the book value of the machine for each of the 5 years using the following depreciation methods. a. Straight Line b. Declining Balance (Double-Declining)

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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