FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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hello, thank s for all your help
 **table.**
---
| Method | Depreciation Expense |
|-------------------------|----------------------|
| | Year 1 | Year 2 |
| **Straight line** | | |
| **Units of production** | | |
| **Declining balance** | | |
| **MACRS (5-year class)**| | |
---
**Instructions:**
Complete the table by calculating the depreciation expenses for Year 1 and Year 2 using the following methods:
1. **Straight line**: Depreciation is spread evenly over the useful life.
2. **Units of production**: Depreciation is based on actual production relative to estimated production.
3. **Declining balance**: An accelerated depreciation method that multiplies the book value at the beginning of each year by a fixed rate.
4. **MACRS (Modified Accelerated Cost Recovery System)**: Use IRS-specified rates for a 5-year class.
Ensure that calculations are not rounded at intermediate steps to maintain accuracy.](https://content.bartleby.com/qna-images/question/6c939943-f505-46a2-8642-caa114ee122b/adc5709e-8381-45e0-8d33-0b2d4ab9df36/ng9mlh_processed.png)
Transcribed Image Text:Complete the following table given this information: **(Do not round intermediate calculations.)**
- **Cost of machine:** $94,000
- **Residual value:** $4,000
- **Useful life:** 5 years
---
**Estimated units machine will produce:** 100,000
**Actual production:**
- **Year 1:** 60,000
- **Year 2:** 15,000
---
**Use** [MACRS](https://www.irs.gov/publications/p946/ch04.html) **table.**
---
| Method | Depreciation Expense |
|-------------------------|----------------------|
| | Year 1 | Year 2 |
| **Straight line** | | |
| **Units of production** | | |
| **Declining balance** | | |
| **MACRS (5-year class)**| | |
---
**Instructions:**
Complete the table by calculating the depreciation expenses for Year 1 and Year 2 using the following methods:
1. **Straight line**: Depreciation is spread evenly over the useful life.
2. **Units of production**: Depreciation is based on actual production relative to estimated production.
3. **Declining balance**: An accelerated depreciation method that multiplies the book value at the beginning of each year by a fixed rate.
4. **MACRS (Modified Accelerated Cost Recovery System)**: Use IRS-specified rates for a 5-year class.
Ensure that calculations are not rounded at intermediate steps to maintain accuracy.
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