Question: On january 2 gillette co purchases and installs a new

On January 2, Gillette Co. purchases and installs a new machine costing $360,000 with a five year life and an estimated $33,000 salvage value. Management estimates the machine will produce 2,180,000 units of product during its life. Actual production of units is as follows: year 1, 425,000; year 2, 452,000; year 3, 445,000; year 4, 438,000; and year 5, 441,000. The total number of units produced by the end of year 5 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)
Required
Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.



Sale on SolutionInn
Sales0
Views94
Comments
  • CreatedMarch 18, 2015
  • Files Included
Post your question
5000