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Rottino Company purchased a new machine on October 1, 2024, at a cost of $150,000. The company estimated that the machine will have a residual value of $12,000. The machine is expected to be used for 10,000 working hours during its five-year life. Rottino Companys year-end is December 31. Instructions Calculate the depreciation expense under the following methods for the

Chapter 1, Exercises #7

Rottino Company purchased a new machine on October 1, 2024, at a cost of $150,000. The company estimated that the machine will have a residual value of $12,000. The machine is expected to be used for 10,000 working hours during its five-year life. Rottino Company’s year-end is December 31. 


Instructions 

Calculate the depreciation expense under the following methods for the year indicated. 

a. Straight-line for 2024. 

b. Units-of-production for 2024, assuming machine usage was 1,700 hours. 

c. Diminishing-balance using double the straight-line rate for 2024 and 2025.

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a. Straight-line method: ($150,000 - $12,000) 5 = $27,600 per year 2024 depreciation =…View the full answer

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Related Book For answer-question
Accounting Principles Volume 2

Accounting Principles Volume 2

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

ISBN: 9781119786634

Answers for Questions in Chapter 1

Brief Exercises:
Exercises:
FINANCIAL REPORTING AND ANALYSIS:
Problem Set A:
Problem Set B:
Questions:

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