Answer:
Instructions are listed below
Explanation:
Giving the following information:
Machine costs= $115,000.
The estimated service life of the machinery is 10 years.
The estimated residual value is $5,000.
The machine is expected to produce 220,000 units during its life.
1) straight line depreciation= (Machine purchase price - residual value)/ use life
straight line depreciation= (115000 - 5000)/10= 11000
2018= 11000
2019= 11000
2) sum of the years' method= (remaining useful life of the asset/sum of the years' digits)* depreciable cost
2018= 10/(10+9+8+7+6+5+4+3+2+1)*(115000-5000)= 110000/55=(10/55)*110000= 20000
2019= (9/55)*110000= 18000
3) Double declining balance method= 2* [(Asset cost - residual value)/useful life of the asset]
2018= (1100000/10)*2= 22000
2019= (110000-22000/10)*2= 17600
4) One hundred fifty percent declining balance= [(purchase value-salvage value)/use years]*1.5
2018= (110000/10)*1.5= 16500
2019= [(110000-16500)/10]*1.5= $14025
