Silverman Company purchased machinery for $162,000 on January 1, 2012 It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units, and working hours of 42,000 During 2012, the company uses the machinery for 14,300 hours, and the machi...

Depreciation base Cost 162000 Straightline 147000 20 7350 ...

Silverman Company purchased machinery for $162,000 on January 1, 2012. It is estimated that the machinery will

Question:

Silverman Company purchased machinery for $162,000 on January 1, 2012. It is estimated that the machinery will have a useful life of 20 years, of $15,000, production of 84,000 units, and working hours of 42,000. During 2012, the company uses the machinery for 14,300 hours, and the machinery produces 20,000 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and double-declining- balance methods.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...