Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round 4 depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line depreciation for 2025 Activity method for 2025, assuming that machine usage was 850 hours Sum-of-the-years'-digits for 2026 $ $ $

Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600. The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round 4 depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line depreciation for 2025 Activity method for 2025, assuming that machine usage was 850 hours Sum-of-the-years'-digits for 2026 $ $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $141,600.
The company estimated that the machine would have a salvage value of $15,600 at the end of its service life. Its life is estimated
at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round
A
depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.)
(a)
(b)
(c)
Straight-line depreciation for 2025
Activity method for 2025, assuming that machine usage was 850 hours
Sum-of-the-years'-digits for 2026
(d) Double-declining-balance for 2026
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