On January 1 2011 the Allegheny Corporation purchased machiner
On January 1, 2011, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.

Required:
Calculate depreciation for 2011 and 2012 using each of the following methods. Round all computations to the nearest dollar.
1. Straight line.
2. Sum-of-the-years' digits.
3. Double-declining balance.
4. One hundred fifty percent declining balance.
5. Units of production (units produced in 2011, 30,000; units produced in 2012, 25,000).

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help