Question

Question 8 (1 point) Saved The Company purchased a machine on January 1st for $693,922. The machine has an expected useful life of 8 years and an expected salvage value of $94,153. The company expects to produce 3,601 units in the first year of use and 8,469 over the life of the machine. Please calculate the depreciation expense that the company will record in the first year using the units-of-production method of depreciation. Your Answer: 49.69 Answer Question 9 (1 point) The Company purchased a machine on January 1st for $859,401. The machine has an expected useful life of 9 years and an expected salvage value of $31,915. The company expects to produce 2,555 units in the first year of use and 9,356 over the life of the machine. Please calculate the depreciation expense that the company will record in the first year using the double-declining-balance method of depreciation. Your Answer:

Answer 1

Q8) Cost Salvage value Expected total units produced over the life of assets Depreciation per unit 693,922 94,153 8,469 (Cost - Salvage Value) / Expected Total units (693,922 - 94,153)/8,469 70.82 Expected units to be poduce in first year Deprecation to be recorded (3,601 Ⓡ 70.82) 3,601 255,022.82 Depreciation $ 255,023 Q9) Life of Assets Depreciation rate under straight line 9 years 100%/9 11.11% Depreciation rate under double declining method (11.11% x 2) 22.22% Cost $ 859,401 Depreciation using double decling method (859,401 x 22.22%) 190,959 Depreciation 190,959