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Question 5) Patty Company purchased a new machine on August 1, 2023, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life. Instructions: A) Compute the depreciation expense under the straight-line method for 2023, 2027, and 2030, assuming a December 31 year-end. B) Compute the depreciation expense under the double-declining balance method for 2023 and 2024. Assume the DDB rate is 100% / 7 years x 2=28.57% (use this rate for your computations) C) Compute the depreciation expense under the units-of-activity method for 2023, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.) Question 6) Wourare Co has delivery aminment that part $68.000 and has been depreciated $31.055.

Question 5) Patty Company purchased a new machine on August 1, 2023, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life. Instructions: A) Compute the depreciation expense under the straight-line method for 2023, 2027, and 2030, assuming a December 31 year-end. B) Compute the depreciation expense under the double-declining balance method for 2023 and 2024. Assume the DDB rate is 100% / 7 years x 2=28.57% (use this rate for your computations) C) Compute the depreciation expense under the units-of-activity method for 2023, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.) Question 6) Wourare Co has delivery aminment that part $68.000 and has been depreciated $31.055.

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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Question 5) Patty Company purchased a new machine on August 1, 2023, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life. Instructions: A) Compute the depreciation expense under the straight-line method for 2023, 2027, and 2030, assuming a December 31 year-end. B) Compute the depreciation expense under the double-declining balance method for 2023 and 2024. Assume the DDB rate is 100% / 7 years x 2 = 28.57% (use this rate for your computations) C) Compute the depreciation expense under the units-of-activity method for 2023, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.) Question 6) Wourers Co has delivery aminment that part $69.000 and has been depreciated $31.055.
Transcribed Image Text:Question 5) Patty Company purchased a new machine on August 1, 2023, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life. Instructions: A) Compute the depreciation expense under the straight-line method for 2023, 2027, and 2030, assuming a December 31 year-end. B) Compute the depreciation expense under the double-declining balance method for 2023 and 2024. Assume the DDB rate is 100% / 7 years x 2 = 28.57% (use this rate for your computations) C) Compute the depreciation expense under the units-of-activity method for 2023, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.) Question 6) Wourers Co has delivery aminment that part $69.000 and has been depreciated $31.055.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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