On January 1,2011,Borba,Inc.purchased a $100,000 machine with an estimated useful life of 10 years or 1,000,000 units and a $10,000 salvage value.The machine actually produced 120,000 units in 2011 and 110,000 units in 2012.
Part A: Calculate depreciation expense and accumulated depreciation using the following three methods:
Part B: In the first year of the machine's life,which method would show the LOWER amount for each of the following financial statement line items? Put an X in the appropriate box.

Question

On January 1,2011,Borba,Inc.purchased a $100,000 machine with an estimated useful life of 10 years or 1,000,000 units and a $10,000 salvage value.The machine actually produced 120,000 units in 2011 and 110,000 units in 2012.
Part A: Calculate depreciation expense and accumulated depreciation using the following three methods:
   Part B: In the first year of the machine's life,which method would show the LOWER amount for each of the following financial statement line items? Put an X in the appropriate box.

Quizplus · Accepted Answer

The Answer of On January 1,2011,Borba,Inc.purchased a $100,000 machine with an estimated useful life of 10 years or 1,000,000 units and a $10,000 salvage value.The machine actually produced 120,000 units in 2011 and 110,000 units in 2012.
Part A: Calculate depreciation expense and accumulated depreciation using the following three methods:
   Part B: In the first year of the machine's life,which method would show the LOWER amount for each of the following financial statement line items? Put an X in the appropriate box.