Question: On January 2 2013 Half Inc purchased a manufacturing machine

On January 2, 2013, Half, Inc., purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $144,000 estimated salvage value. Half expects to manufacture 1,800,000 units over the machine’s life. During 2014, Half manufactured 300,000 units.

For each item, calculate depreciation expense for 2014 (the second year of ownership) for the machine just described under each method listed below:
1. Straight-line
2. Double-declining balance
3. Sum-of-the-years’ digits
4. Units-of-production

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  • CreatedSeptember 10, 2014
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