The Jefferson Co. purchased a machine on January 1, 2016. The machine cost $595,000. It had an
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Question:
The Jefferson Co. purchased a machine on January 1, 2016. The machine cost $595,000. It had an estimated life of ten years, or 30,000 units, and an estimated residual value of $40,000. In 2016, Jeffries produced 3,000 units.
Required
Compute the depreciation charge for 2016 using each of the following methods:
a. Double declining balance method
b. Activity method (units of output)
c. Sum of the years’ digits method
d. Straight line method
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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