Covey Company purchased a machine on January 1, 2022, by paying cash of $450,000. The machine...

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Covey Company purchased a machine on January 1, 2022, by paying cash of $450,000. The machine has an estimated useful life of five years, is expected to produce 1,500,000 units, and has an estimated residual value of $45,000. A. Calculate depreciation expense for each year of the machine's useful life under. Note: Do not round the intermediate calculation. Round your final answer to the nearest whole dollar. 1. Straight-line depreciation method. 2. Double declining-balance method. Depreciation expense for Year 1 Depreciation expense for Year 2 Depreciation expense for Year 3 Depreciation expense for Year 4 Depreciation expense for Year 5 $ 69 $ $ $ Straight-line depreciation method 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ Double declining- balance method 180,000 108,000 64,800 38,880 23,328 B. What is the book value of the machine after three years using the double declining-balance method? C. What is the book value of the machinery after three years using the straight-line method? D. If the machine was used to produce and sell 120,000 units in 2022, what would be the depreciation expense using the units-of-production method? Note: Do not round the intermediate calculation. Round your final answer to the nearest whole dollar. Covey Company purchased a machine on January 1, 2022, by paying cash of $450,000. The machine has an estimated useful life of five years, is expected to produce 1,500,000 units, and has an estimated residual value of $45,000. A. Calculate depreciation expense for each year of the machine's useful life under. Note: Do not round the intermediate calculation. Round your final answer to the nearest whole dollar. 1. Straight-line depreciation method. 2. Double declining-balance method. Depreciation expense for Year 1 Depreciation expense for Year 2 Depreciation expense for Year 3 Depreciation expense for Year 4 Depreciation expense for Year 5 $ 69 $ $ $ Straight-line depreciation method 81,000 $ 81,000 $ 81,000 $ 81,000 $ 81,000 $ Double declining- balance method 180,000 108,000 64,800 38,880 23,328 B. What is the book value of the machine after three years using the double declining-balance method? C. What is the book value of the machinery after three years using the straight-line method? D. If the machine was used to produce and sell 120,000 units in 2022, what would be the depreciation expense using the units-of-production method? Note: Do not round the intermediate calculation. Round your final answer to the nearest whole dollar.

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ANSWER To calculate the depreciation expense for each year and determine the book value of the machine lets use the given depreciation methods A Depre... View the full answer