A production machine which cost $2,200,000 is acquired on October 1,2016.Its estimated residual value is $200,000 and its expected life is 10 years or about 80,000 operating hours.During 2016,the machine was used to produce products for 3,000 operating hours during 2016 and 8,100 operating hours during 2017.Lorny does not use the half-year convention for depreciating any assets.
Calculate depreciation expense for 2015 and 2016 by each of the following methods:
(a)Straight-line method
(b)Double-declining balance method
(c)Units-of-output method

Question

Quizplus · Accepted Answer

The Answer of A production machine which cost $2,200,000 is acquired on October 1,2016.Its estimated residual value is $200,000 and its expected life is 10 years or about 80,000 operating hours.During 2016,the machine was used to produce products for 3,000 operating hours during 2016 and 8,100 operating hours during 2017.Lorny does not use the half-year convention for depreciating any assets.
Calculate depreciation expense for 2015 and 2016 by each of the following methods:
(a)Straight-line method
(b)Double-declining balance method
(c)Units-of-output method

A Production Machine Which Cost $2,200,000 Is Acquired on October