Windsor Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $136,500 The company estimated that the machine would have a salvage value of $17,700 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 depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 9900 (b) Activity method for 2020, assuming that machine usage was 700 hours 4158 (c) Sum-of-the-years'-digits for 2021 36300 (d) Double-declining-balance for 2021 | %24 %24 %24
Windsor Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $136,500 The company estimated that the machine would have a salvage value of $17,700 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 depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 9900 (b) Activity method for 2020, assuming that machine usage was 700 hours 4158 (c) Sum-of-the-years'-digits for 2021 36300 (d) Double-declining-balance for 2021 | %24 %24 %24
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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