Savior Company purchased a machine at a cost of P635, 000 on January 1, 2018. It was estimated that the machine would have a residual value of P35, 000. Statistics relating to the machine over its estimated useful life were: Estimated useful life: Years-5; Service hours- 60,000; Production output-150, 000 Actual operations service hours. unit produced 2018. 14000. 34000 2019. 13000. 32000 2020. 10000. 25000 2021. 11000. 29000 2022. 12000. 30000 Required: Compute the depreciation expense for the year 2021 following methods: a Straight line b. Service hours c. Production method
Savior Company purchased a machine at a cost of P635, 000 on January 1, 2018. It was estimated that the machine would have a residual value of P35, 000. Statistics relating to the machine over its estimated useful life were: Estimated useful life: Years-5; Service hours- 60,000; Production output-150, 000 Actual operations service hours. unit produced 2018. 14000. 34000 2019. 13000. 32000 2020. 10000. 25000 2021. 11000. 29000 2022. 12000. 30000 Required: Compute the depreciation expense for the year 2021 following methods: a Straight line b. Service hours c. Production method
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.3E
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