Business
Business, 24.04.2020 00:40, GreenHerbz206

Whispering Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $144,000. The company estimated that the machine would have a salvage value of $18,000 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 18,000 hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated.

(a) Straight-line depreciation for 2020.
(b) Activity method for 2020, assuming that machine usage was 780 hours.
(c) Sum-of-the-years'-digits for 2021.
(d) Double-declining-balance for 2021.

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Answers: 1

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