DuPage Company purchases a factory machine at a cost of ($ 18,000) on January 1 , 2025.

Question:

DuPage Company purchases a factory machine at a cost of \(\$ 18,000\) on January 1 , 2025. DuPage expects the machine to have a salvage value of \(\$ 2,000\) at the end of its 4 -year useful life.

During its useful life, the machine is expected to be used 160,000 hours. Actual annual hourly use was \(2025,40,000 ; 2026,60,000 ; 2027,35,000\); and 2028, 25,000.

Instructions

a. Prepare a depreciation schedule for the straight-line method.

b. Prepare a depreciation schedule for the units-of-activity method.

c. Prepare a depreciation schedule for the declining-balance method using double the straight-line rate.

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Related Book For  book-img-for-question

Financial Accounting Tools For Business Decision Making

ISBN: 9781119791089

10th Edition

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

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