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?
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