Question

At the beginning of the fiscal year, Hughes Rental sung or the fiscal year, Hughes Rental Service buys a new machine for $130,00. The machine has an estimated life of ten years (870.000 units) and an estimated salvage value of Instructions: omg ne following three methods, calculate for the first five years depreciation of the machine, the accumulated depreciation at the end of each year, and the ending book value of them year (round answers to the nearest dollar), Straight-line method 2. Double-declining-balance method Units-of-production method (year 1- 168,000 units, year 2- 143,000 units, year 3- 75,000, year 4- 89,000, and year 5-113,250 units)

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Answer 1

1) Straight line

Year	Depreciation expense	Accumulated depreciation	Book value
1	(136500-24000/10) = 11250	11250	125250
2	11250	22500	114000
3	11250	33750	102750
4	11250	45000	91500
5	11250	56250	80250

2) Double decline line

Year	Depreciation expense	Accumulated depreciation	Book value
1	27300	27300	109200
2	21840	49140	87360
3	17472	66612	69888
4	13978	80590	55910
5	11182	91772	44728

1) Straight line

Year	Depreciation expense	Accumulated depreciation	Book value
1	21724	21724	114776
2	18491	40215	96285
3	9698	49913	86587
4	11509	61422	75078
5	14644	76066	60434