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Nonamiya [84]
3 years ago
4

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.

The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation under the double-declining-balance method.
Business
1 answer:
Sav [38]3 years ago
4 0

Answer:

Year 2= $20,880

Explanation:

Giving the following information:

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year for $87,000. The machine's useful life is estimated to be 5 years, with a $7,000 salvage value.

We need to use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= (87,000/5)*2= 34,800

Year 2= (52,200/5)*2= 20,880

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