The Angelus Press Ltd. purchased a machine on January 8, 2014, at a cost of $320,000. It is estimated to have a useful life of 5 years or work for a total of (300,000 hours) and has an estimated residual value of $20,000. The machine worked for 122,000 hours the first year, 75,000 hours the second year, 42,350 hours the third year, etc. Using this information, answer ALL the following questions. Show your calculations and state clearly what is your answer.

a. Using the straight-line method, determine the machine's depreciation expense at December 31, 2016 (the third year). 

b. If the machine is depreciated using the units of activity method, calculate the accumulated depreciation for year 2015 (the second year). 

c. If the machine is depreciated using the double declining balance method, calculate the book value at Dec 31, 2015 (the end of the second year). 

d. If the machine was purchased on April 5, 2014, and the double declining balance method is used, calculate the accumulated depreciation at Dec 31, 2015 (the end of the second year). 

e. If the machine was purchased on April 30, 2014, JOURNALIZE the straight-line depreciation expense at December 31, 2014. (the end of the first year) 

Answer rating: 100% (QA)

Straightline depreciation method Annual depreciation Cost Residual value Useful life Annual deprecia... View the full answer