FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The cost of equipment purchased by Nash, Inc., on June 1, 2025, is $100,800. It is estimated that the machine will have a
$8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 46,200,
and its total production is estimated at 660,000 units. During 2025, the machine was operated 6,180 hours and
produced 56,650 units. During 2026, the machine was operated 5,665 hours and produced 49,500 units.
Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026,
using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.)
a.
b.
Straight-line
Units-of-output
C. Working hours
e.
d. Sum-of-the-years'-digits
$
$
$
Double-declining-balance $
2025
$
$
$
$
LA
$
LA
2026
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Transcribed Image Text:The cost of equipment purchased by Nash, Inc., on June 1, 2025, is $100,800. It is estimated that the machine will have a $8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 46,200, and its total production is estimated at 660,000 units. During 2025, the machine was operated 6,180 hours and produced 56,650 units. During 2026, the machine was operated 5,665 hours and produced 49,500 units. Compute depreciation expense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 45,892.) a. b. Straight-line Units-of-output C. Working hours e. d. Sum-of-the-years'-digits $ $ $ Double-declining-balance $ 2025 $ $ $ $ LA $ LA 2026
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