VanHoutte Foods bought machinery on September 10, 2018, for $168,000.

VanHoutte Foods bought machinery on September 10, 2018, for $168,000. It was determined that the machinery would be used for six years or until it produced 260,000 units and then would be sold for about $27,600. Complete the schedule below by calculating annual depreciation to the nearest whole month for 2018, 2019, and 2020. VanHoutte’s year-end is December 31.

Depreciation Units-of-Production Year Straight-Line


Assume actual units produced of:

2018. 43,000 79,000 2020. 64,000 2019 .


Analysis Component: If depreciation is not recorded, what is the effect on the income statement and balance sheet?



Transcribed Image Text:

Depreciation Units-of-Production Year Straight-Line 2018. 43,000 79,000 2020. 64,000 2019 .

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