Description of this paper

smith company purchased a new machine on January 1,2005,

Description

solution


Question

smith company purchased a new machine on January 1,2005, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life. production during 2005 was 70,000 units and during 2006 was 110,000 units. Determine the amount of depreciation expense to be recorded on the machine for the years 2005 and 2006 under each of the following methods.;(1) straight line 2005 and 2006;(2) units of production method 2005 and 2006;(3) double-declining-balance 2005 and 2006

 

Paper#33512 | Written in 18-Jul-2015

Price : $25
SiteLock