Question: Crane Ltd . purchased a new machine on April 4 , 2 0 2 0 , at a cost of $ 1 7 2 ,

Crane Ltd. purchased a new machine on April 4,2020, at a cost of $172,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2020; 2,200 hours in 2021; 2,400 hours in 2022; 2,100 hours in 2023; and 1,800 hours in 2024. Crane has a December 31 year end.
(a)
6 Your answer is partially correct.
Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g.
2.75 and final answers to 0 decimal places, e.g.5,275.)
(1) Straight-line for 2020 through to 2024.
2020 expense $
2021 expense $
2022 expense $
2023 expense $
2024 expense $
(2) diminishing balance using double straight line rate for 2020 through to 2024
2020 expense $
2021 expense $
2022 expense $
2023 expense $
2024 expense $
(3) units of production for 2020 through to 2024
2020 expense $
2021 expense $
2022 espense $
2023 expense $
2024 expense $
 Crane Ltd. purchased a new machine on April 4,2020, at a

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!