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
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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