Irvington Manufacturing Inc. purchased a new machine on January 2, 2014, that was built to perform one
Question:
Acquisition cost......................................$330,000
Residual value.........................................$30,000
Estimated service life:
Years.................................................... 5
Service hours..........................................250,000
Production output....................................300,000
Using each of the following methods, compute the annual depredation rate and charge for the years ended December 31, 2014, and 2015:
(1) Straight-line
(2) Service hours (assume 32,000 hours for 2014 and 36,000 hours for 2015).
(3) Productive-output (assume 31,000 units for 2014 and 37,000 units for 2015).
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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