Question: On October 1 2011 the Allegheny Corporation purchased machiner

On October 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.

Calculate depreciation for 2011 and 2012 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 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, 10,000; units produced in 2012, 25,000).

View Solution:

Sale on SolutionInn
  • CreatedJuly 02, 2013
  • Files Included
Post your question