Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. Compute 2017 depreciation expense using the double-declining-balance method.
Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. Compute 2017 depreciation expense using the double-declining-balance method.
Related questions
| Bluejay Companypurchased a new machine on October 1, 2017, at a cost of $104,000.The company estimated that the machine has a salvage value of$8,000. The machine is expected to be used for 80,000 working hoursduring its 8-year life. | |||||||||
| Compute depreciation using thefollowing methods in the year indicated. | |||||||||
| 1 | Straight-line method: | 2017 | 2018 | ||||||
| Straight-line for 2017 and 2018, assuming aDecember 31 year-end. | |||||||||
| 2 | Double-declining-balance method: | ||||||||
| Declining-balance using double the straight-linerate for 2017 and 2018. | |||||||||
| 3 | Double-declining-balance method: | ||||||||
| Units-of-activity for 2017, assuming machine usagewas 2,900 hours. | |||||||||
| (Round depreciation per unit to the nearestcent.) | |||||||||
On January 1, 2016, the AlleghenyCorporation purchased machinery for $156,000. The estimated servicelife of the machinery is 10 years and the estimated residual valueis $13,000. The machine is expected to produce 220,000 units duringits life.
| Required: |
| Calculate depreciation for 2016 and 2017 using each of thefollowing methods. (Do not round intermediatecalculations.)
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| 5. | Units of production (units produced in 2016, 46,000; unitsproduced in 2017, 41,000). (Round "Depreciation per unitrate" answers to 2 decimal places.)
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