Blue Manufacturing purchased a machine on January 1, 2020 for use in its factory. Blue paid $458,000
Question:
Blue Manufacturing purchased a machine on January 1, 2020 for use in its factory. Blue paid $458,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $40,000. During its life, the machine was expected to produce 380,000 units. During 2020, the machine produced 41,800 units, and produced 58,600 in 2021. The machine was subject to a 20% CCA rate, and Blue’s year-end was December 31.
Calculate the annual depreciation amount for 2020 and 2021 under the straight-line method.
2020 | 2021 | |||
Annual depreciation amount | $ 41800 | $ 41800 |
eTextbook and Media
Calculate the annual depreciation amount for 2020 and 2021 under the activity method. (Round per unit value to 2 decimal places e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.)
2020 | 2021 | |||
Annual depreciation amount | $ 45980 | $ 64460 |
Calculate the annual depreciation amount for 2020 and 2021 under the double-declining balance method.
2020 | 2021 | |||
Annual depreciation amount | $ ??? | $ ??? |
eTextbook and Media
Calculate the annual depreciation amount for 2020 and 2021 under the capital cost allowance method.
2020 | 2021 | |||
Annual depreciation amount | $ ??? | $ ??? |
I can't get my calculations to work out for the last 2?
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen