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Hi-Crest Company purchased a machine on January 1, 2009, for $400,000. The machine has an estimated useful life of 6 years and a $10,000 residual value. It is now December 31, 2010 and Hi-Crest Company is in the process of preparing financial statements. Calculate depreciation expense for 2009 and 2010, using both the straight-line and double declining balance methods of depreciation. Show work.

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Keith Leannon
Keith LeannonLv2
28 Sep 2019

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On 2009 January 2, a new machine was acquired for USD 900,000.The machine has an estimated salvage value of USD 100,000 and anestimated useful life of 10 years. The machine is expected toproduce a total of 500,000 units of product throughout its usefullife. Compute depreciation for 2009 and 2010 using each of thefollowing methods: a. Straight line. b. Units of production (assume30,000 and 60,000 units were produced in 2009 and 2010,respectively). c. Double-declining balance.

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Year ended Depreciation Expense Accumulated Depreciation Net BookValue

12/31/2009 [ ] [ ] [ ]

12/31/2010 [ ] [ ] [ ]



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