Question

Complete the following table given this information: (Do not round intermediate calculations.) Cost of machine $ 94,000 Residual value $ 4,000 Useful life 5 years Estimated units machine will produce 100,000 Actual production: Year 1 60,000
Year 2 15,000 Use MACRS table.
Straight line method?
Units of production?
Declining balance?
MACRS (5-year class)

Answer 1

The completion of the following table under different depreciation methods is as follows:

Depreciation Expense:

Method                           Year 1                     Year 2

Straight line                   $18,000                 $18,000

Units of production      $54,000                 $13,500

Declining balance        $37,600                $22,560

MACRS (5-year class)   $18,800                $30,080

Data and Calculations:

Cost of machine = $94,000

Residual value = $4,000

Depreciable value = $90,000 ($94,000 - $4,000)

Estimated useful life = 5 years

Depreciation expense:

Straight-line method = $18,000 ($90,000/5)

Estimated units of produciton = 100,000

Unit depreciation rate = $0.90

Actual production   Depreciation

Year 1 = 60,000      $54,000 ($0.90 x 60,000)

Year 2 = 15,000      $13,500 ($0.90 x 15,000)

Declining Balance:

Year 1 = $37,600 ($94,000 x 40%)

Year 2 = $22,560 ($94,000 - $37,600) x 40%

MACRS:

Year 1 = $18,800 ($94,000 x 20%)

Year 2 = $30,080 ($94,000 x 32%)

Learn more about the different depreciaton methods at brainly.com/question/19565311 and brainly.com/question/19091134

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