Brief Exercise 7-32 (Algorithmic)

Depreciation Methods

On January 1, 2019, Loeffler Company acquired a machine at a cost of $302,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $14,000. Loeffler uses the machine for 1,700 and 2,000 machine hours in 2019 and 2020, respectively.

Required:

Compute depreciation expense for 2019 and 2020 using the:

1.Straight-line method of depreciation.

Depreciation Expense

2019. (_________________)

2020 (_________________)

2.Double-declining-balance method of depreciation.

Depreciation Expense

2019. (_________________)

2020 (_________________)

3.Units-of-production method of depreciation.

Depreciation Expense

2019. (_________________)

2020. (_________________)