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Oriole Ltd. purchased a new machine on April 4, 2020, at a cost of $188,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2020; 2,400 hours in 2021; 2,500 hours in 2022; 2,300 hours in 2023; and 1,300 hours in 2024. Oriole has a December 31 year end. (a) Your answer is partially correct. Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line for 2020 through to 2024. 2020 expense $ 25800 2021 expense $ 41280 2022 expense $ 43000 2023 expense $ 39560 2024 expense $ 22360 (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. 2020 expense $ 94000 2021 expense $ 47000 2022 expense $ 23500 2023 expense $ 11750

Oriole Ltd. purchased a new machine on April 4, 2020, at a cost of $188,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2020; 2,400 hours in 2021; 2,500 hours in 2022; 2,300 hours in 2023; and 1,300 hours in 2024. Oriole has a December 31 year end. (a) Your answer is partially correct. Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line for 2020 through to 2024. 2020 expense $ 25800 2021 expense $ 41280 2022 expense $ 43000 2023 expense $ 39560 2024 expense $ 22360 (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. 2020 expense $ 94000 2021 expense $ 47000 2022 expense $ 23500 2023 expense $ 11750

FINANCIAL ACCOUNTING
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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Oriole Ltd. purchased a new machine on April 4, 2020, at a cost of $188,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2020; 2,400 hours in 2021; 2,500 hours in 2022; 2,300 hours in 2023; and 1,300 hours in 2024. Oriole has a December 31 year end. (a) Your answer is partially correct. Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line for 2020 through to 2024. 2020 expense $ 25800 2021 expense 41280 2022 expense $ 43000 2023 expense $ 39560 2024 expense $ 22360 (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. 2020 expense $ 2021 expense +A 94000 $ 47000 2022 expense $ 23500 2023 expense $ 11750
Transcribed Image Text:Oriole Ltd. purchased a new machine on April 4, 2020, at a cost of $188,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2020; 2,400 hours in 2021; 2,500 hours in 2022; 2,300 hours in 2023; and 1,300 hours in 2024. Oriole has a December 31 year end. (a) Your answer is partially correct. Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line for 2020 through to 2024. 2020 expense $ 25800 2021 expense 41280 2022 expense $ 43000 2023 expense $ 39560 2024 expense $ 22360 (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. 2020 expense $ 2021 expense +A 94000 $ 47000 2022 expense $ 23500 2023 expense $ 11750
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