Universal Tools Company purchased a machine on July 1, 2015 for $180,000. The machine was estimated to
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Question:
Universal Tools Company purchased a machine on July 1, 2015 for $180,000. The machine was estimated to have a useful life of 10 years and a salvage value of $20,000. The company’s fiscal year ends on December 31.
Required:
What was Universal Tools’ depreciation expense for 2015 and 2016 under the Double-declining balance method?
Suppose on Jan. 1, 2017, Universal Tools decided that the machine’s remaining useful life (starting from Jan. 1, 2017) was only 6 years and the salvage value was only $15,000, and that it was more appropriate to apply the straight-line depreciation method from then on. Calculate the depreciation expense for 2017.
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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