The Gruman Company purchased a machine for $220,000 on January 2, 2004. It made the following estimates:
Question:
The Gruman Company purchased a machine for $220,000 on January 2, 2004. It made the following estimates:
Service life ...... 5 years or 10,000 hours
Production ...... 200,000 units
Residual value .... $20,000
In 2007, the company uses the machine for 1,800 hours and produces 44,000 units.
Required
Compute the depreciation for 2007 under each of the following methods:
1. Straight-line
2. Hours worked
3. Units of output
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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