Question

Crane Company purchased a new machine on October 1, 2022, at a cost of $116,100. The company estimated that the machine has a salvage value of $7,020. The machine is expected to be used for 108,000 working hours during its 10-year life. Compute depreciation using the following methods in the year indicated. X Your answer is incorrect. Declining-balance using double the straight-line rate for 2022 and 2023. 2022 2023 Depreciation using the Declining-balance method $ 2727 $ e Textbook and Media X Your answer is incorrect. Calculate the depreciation cost per hour. (Round answer to 2 decimal places, eg. $1.25) Depreciation cost per hour $

Answer 1

a) Depreciation expense : Double decline balance

	2022	2023
Depreciation expense	116100*20%*3/12 = 5805	116100*20%*9/12+116100*80%*20%*3/12 = 22059

b) Depreciation cost per hour = (116100-7020)/108000 = 1.01 per hour

c) Depreciation expense = 500*1.01 = $505