Question

In 2013, Carlton, Inc., acquires a machine for $88,800. It expects the machine to last six years and to operate for 30,000 hours during that time. Estimated salvage value is $4,800 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.



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  • CreatedMarch 04, 2014
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