Question: Oriole Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $165,000. The company estimated that
Oriole Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $165,000. The company estimated that the machine would have a salvage value of $12,000 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.)
| (a) | Straight-line depreciation for 2020 | $enter a dollar amount | ||
|---|---|---|---|---|
| (b) | Activity method for 2020, assuming that machine usage was 720 hours | $enter a dollar amount | ||
| (c) | Sum-of-the-years'-digits for 2021 | $enter a dollar amount | ||
| (d) | Double-declining-balance for 2021 |
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