Genesis acquires a machine for $177,600.It expects the machine to last six years and to operate for 30,000 hours during that time.Estimated salvage value is $9,600 at the end of the machine's useful life.Calculate the depreciation charge for each of the first three years using each of the following methods:
a. The straight-line (time) method.
b. The straight-line (use) method, with the following operating times: first year, 4,500 hours; second year, 5,000 hours; third year, 5,500 hours.

Question

Quizplus · Accepted Answer

The Answer of Genesis acquires a machine for $177,600.It expects the machine to last six years and to operate for 30,000 hours during that time.Estimated salvage value is $9,600 at the end of the machine's useful life.Calculate the depreciation charge for each of the first three years using each of the following methods:
a. The straight-line (time) method.
b. The straight-line (use) method, with the following operating times: first year, 4,500 hours; second year, 5,000 hours; third year, 5,500 hours.

Genesis Acquires a Machine for $177,600