Question On October 1, 2019, Jay Company purchased a new machine for $112 500 The machine is estimated to have a $10,500 salvage value after its 10-year useful life. The machine is expected to be used 20,000 working hours over As usolut tre Instructions: Complate the lollowing depreciation schedules for 2019 and 2020. All answers should have dollar signs and commas. For example, your answers could be in the following formats: $5,000 or $15,000 or $150,000. Straight-Line Method Depreciation Expense Accumulated Depreciation Book Value 2020. Declining Balance Method (Assuming double the straight-line rate) Year Depreciation Expense Accumulated Depreciation Book Value 2019 2020 Units of Activity Method (Assuming machine working hours are as follows: 2019: 1,500; 2020: 4,000) Year Depreciation Expense Accumulated Depreciation Book Value 2019 2020

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.