Altuve Inc. purchased a machine at the beginning of 2020 for $80,000. Altuve incurred $1,000 in...
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Altuve Inc. purchased a machine at the beginning of 2020 for $80,000. Altuve incurred $1,000 in delivery charges and $2,000 in installation charges. Altuve estimates that the machine will last 3 years or can be used to produce 90,000 units of production. Altuve expects the residual value to be $10,000. Required: In 2020, 2021, and 2022, Altuve produced 38,000 units, 32,000 units, and 30,000 units respectively. Determine the depreciation expense for 2020, 2021, and 2022, assuming (a) the Straight Line Method; (b) the Usage Method; and. (c) Double Declining Method. Be sure to show your work. S/L Usage DDB Depreciation Expense 2020 2021 2022 Altuve Inc. purchased a machine at the beginning of 2020 for $80,000. Altuve incurred $1,000 in delivery charges and $2,000 in installation charges. Altuve estimates that the machine will last 3 years or can be used to produce 90,000 units of production. Altuve expects the residual value to be $10,000. Required: In 2020, 2021, and 2022, Altuve produced 38,000 units, 32,000 units, and 30,000 units respectively. Determine the depreciation expense for 2020, 2021, and 2022, assuming (a) the Straight Line Method; (b) the Usage Method; and. (c) Double Declining Method. Be sure to show your work. S/L Usage DDB Depreciation Expense 2020 2021 2022
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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