Katie, your Accounting Manager, has asked you to calculate the depreciation for the new company car. the new car was purchased on June 1, 2018. • The purchase price was $12,600 and has useful lives of 3 years. • The salvage or residual amount is 10% of the purchase price. • It was estimated that the company car would be driven a total of 93,000 miles. • In year 1 the car was driven 48,900 miles, in year 2 the car was driven 35,180 miles and in year 3 the car was driven 12,300 miles.

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During the first year , the machine produces 40,000 units of product and 32,500 units of the product in the second year. Determine the machine’s first- and second-year depreciation using Units -of – production method

Screen Gem Movie Theater purchased a new projector for $155,000 with a salvage value of $2,000. Delivery and installation amounted to $580. The projector is expected to have a useful life of 15,000 hours. Using the the units-of-production method calculate the depreciation per unit?

Becker Office Service purchased a new computer system in Year 1 for $36,400. It is expected to have a five-year useful life and a $3,700 salvage value. The company expects to use the system more extensively in the early years of its life. Required a. Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation. b. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. d. Assume that Becker Office Service sold the computer system at the end of the fourth year for $18,000. Compute the amount of gain or loss using each depreciation method. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation. Depreciation Expense Year 1 2 3 4 LO Required D 5