FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Crane Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $120,300.
The company estimated that the machine would have a salvage value of $12,300 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, eg. 5.35 for computational purposes. Round your answers to 0 decimal places, eg. 45,892.)
(a) Straight-line depreciation for 2020
(b)
(c)
(d)
Activity method for 2020, assuming that machine usage was 830 hours
Sum-of-the-years-digits for 2021
Double-declining-balance for 2021
$
$
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Transcribed Image Text:Crane Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $120,300. The company estimated that the machine would have a salvage value of $12,300 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, eg. 5.35 for computational purposes. Round your answers to 0 decimal places, eg. 45,892.) (a) Straight-line depreciation for 2020 (b) (c) (d) Activity method for 2020, assuming that machine usage was 830 hours Sum-of-the-years-digits for 2021 Double-declining-balance for 2021 $ $
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