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    owens's Avatar
    owens Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Feb 23, 2006, 03:02 PM
    Depreciation Methods
    On January 1, 2003, Eiger Company Purchased A New Piece Of Machinery. The Machine Cost $200,000. Optional Equipment For The Machine Was Also Purchased At A Cost Of $14,000. The Manufacturer Charged $1,400 To Install The Option. The Estimated Life Of The Machine Was 7 Years And The Estimated Service Life Of The Machine In Hours Was 21,000. The Estimated Salvage Value Of The Machine Was $4,000. The Machine Was Used For 2,700 Hours In 2005.

    Compute Depreciation Expense For 2005 Under Each Of The Following
    Methods:

    A) Straight-line
    B) Double Declining Balance
    C) Sum Of The Years Digits
    D) Service Hours
    E) Macrs (using The Following Rates):
    Year 1 14.29%
    Year 2 24.49%
    Year 3 17.49%
    Year 4 12.49%
    Year 5 8.93%
    Year 6 8.92%
    Year 7 8.93%
    Year 8 4.46%


    Can I Find The Depreciation For 2005 With Out Doing The Rest Of The Years?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Feb 23, 2006, 03:25 PM
    No.

    But it is only 3 yrs. And once you know how to do Year 1, Years 2 and 3 are a piece of cake.
    mbya777's Avatar
    mbya777 Posts: 15, Reputation: 2
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    #3

    Feb 23, 2006, 05:15 PM
    I think I am doing this in my a-level business studies class wow! Lol
    Johnexo's Avatar
    Johnexo Posts: 2, Reputation: 1
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    #4

    Dec 15, 2010, 11:08 PM
    Most items begin losing value as soon as they leave the store. How quickly items depreciate depends on various factors.
    Depreciation methods
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On January 1, 2003, Eiger Company Purchased A New Piece Of Machinery. The Machine Cost $200,000. Optional Equipment For The Machine Was Also Purchased At A Cost Of $14,000. The Manufacturer Charged $1,400 To Install The Option. The Estimated Life Of The Machine Was 7 Years And The Estimated...

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