Dray Enterprises recently acquired a new machine at a cost of $ 59,000 The machine has an estimated useful life of six years or 45,000 production hours, and salvage value is estimated at $ 5,000 During the first two years of the assets life, 8,000 and 7,500 production hours, respectively, were logg...

a 59000 5000 6 years 8000 per year b 59000 5000 45 ...

Dray Enterprises recently acquired a new machine at a cost of $ 59,000. The machine has an

Question:

Dray Enterprises recently acquired a new machine at a cost of $ 59,000. The machine has an estimated useful life of six years or 45,000 production hours, and is estimated at $ 5,000. During the first two years of the asset’s life, 8,000 and 7,500 production hours, respectively, were logged by the machine. Calculate the depreciation charge for the first two years of the asset’s life using the.
(a) Straight-line method.
(b) Units-of-production method.
(c) Double-declining-balance method.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...