Compute the amount of depreciation expense for the first year
Depreciation Calculations
On January 1, Clauser Company purchased a $79,000 machine. The estimated life of the machine was four years, and the estimated salvage value was $4,000. The machine had an estimated useful life in productive output of 90,000 units. Actual output for the first two years was: year 1, 25,000 units; year 2, 18,000 units.
Required:
1. Compute the amount of depreciation expense for the first year, using each of the following methods:
a. Straight-line.
b. Units-of-production.
2. What was the book value of the machine at the end of the first year, assuming that straight-line depreciation was used?
3. If the machine is sold at the end of the third year for $20,000, how much should the company report as a gain or loss (assuming straight-line depreciation)?
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Answers
Status NEW
Posted 09 May 2017 12:05 PM
My Price 8.00
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file 1494334027-2088288_1_636298592446056707_2088288.xlsx preview (153 words )
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