Calculating depreciation expense using four different methods
Action Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2011:
Purchase price | $ 70,000 |
Delivery cost | $ 2,000 |
Installation charge | $ 1,000 |
Estimated life | 5 years |
Estimated units | 140,000 |
Salvage estimate | $ 3,000 |
During 2011, the machine produced 26,000 units and during 2012, it produced 21,000 units.
Required
Determine the amount of depreciation expense for 2011 and 2012 using each of the following methods:
a. Straight line.
b. Double-declining-balance.
c. Units of production.
d. MACRS, assuming that the machine is classified as seven-year property.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.