activity methods hour

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5000 x

4800 x

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5000 x

Depreciation and Partial Periods EC Illustration (Four Methods): Maserati SpA purchased a new machine for its assembly process on August 1, 2019. The cost of this machine was 150,000. The company estimated that the machine would have a salvage value of 24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31. Instructions: Compute the depreciation expense under the following methods. (a) Straight-line depreciation. (c) Sum-of-the-years'-digits. (b) Activity method (d) Double-declining balance