Joe Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of $64,000 and an expected life of 5 years. The actual machine hours were a total of 154,400 over the 5 years. Each year the hours were: 55,000 in year 1, 50,000 in year 2, 30,000 in year 3, 13,000 in year 4, and 6,400 in year 5. Calculate the depreciation cost per machine hour. Calculate the depreciation expense, accumulated depreciation and book value for all 5 years of the machine's expected life using the units of production method of depreciation.
Joe Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of $64,000 and an expected life of 5 years. The actual machine hours were a total of 154,400 over the 5 years. Each year the hours were: 55,000 in year 1, 50,000 in year 2, 30,000 in year 3, 13,000 in year 4, and 6,400 in year 5. Calculate the depreciation cost per machine hour. Calculate the depreciation expense, accumulated depreciation and book value for all 5 years of the machine's expected life using the units of production method of depreciation.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter9: Depreciation (deprec)
Section: Chapter Questions
Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...
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Joe Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of $64,000 and an expected life
of 5 years. The actual machine hours were a total of 154,400 over the 5 years. Each year the hours were: 55,000 in year 1, 50,000 in year 2, 30,000 in
year 3, 13,000 in year 4, and 6,400 in year 5.
Calculate the
Calculate the depreciation expense,
life using the
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