Question

Question A

Sheridan Company purchased a new machine on October 1, 2022. at a cost of $77.980. The company estimated that the machine has a salvage value of $7.070. The machine is expected to be used for 57.980 working hours during its 7-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, eg. 5,275.25.) 2022 - 2023 The depreciation expense under the straight-line method $

Question B

Question C

Question E

Answer 1

Solution to the First Question

Straight Line Depreciation Expense = [Cost of the Machine – Salvage Value] / Useful life

= [$77,980 - $7,070] / 7 Years

= $70,910 / 7 Years

= $10,130 per year

Depreciation expenses for 2022

Depreciation expenses for 2022 = Annual depreciation expenses x Month fraction

= $10,130 x [3 Months / 12 Months] (ie, from October 01, 2022 to December 31, 2022)

= $2,532.50

Depreciation expenses for 2023

Depreciation expenses for 2023 = $10,130.00

“Therefore, the Depreciation expenses for 2022 = $2,532.50

Depreciation expenses for 2023 = $10,130.00”