Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 22 Feb 2018 My Price 7.00

Gretchen, Inc.

Depreciation Calculations

Gretchen, Inc., a firm that makes oversized boots, purchased a machine for its factory. The following data relate to the machine:

During 2008, the machine was used 1,800 hours. During 2009, the machine was used 2,900 hours.

Required:

Determine the depreciation expense and the year-end book values for the machine for the years 2008 and 2009, assuming that:

1. The straight-line method is used.

2. The double-declining-balance method is used.

3. The units-of-production method is used.

4. The sum-of-the-years’-digits method is used.

5. Interpretive Question: If you were Gretchen, which method would you use in order to report the highest profits in 2008 and 2009 combined?

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Feb 2018 09:02 PM My Price 7.00

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