Answer:
Straight line depreciation expense:
2018 = $3,000
2019 = $3,000
Unit of activity deprecation expense
2018 = $800
2019= $3,000
Double declining method:
2018 = $7,800
2019 = $6,240
Explanation:
Straight line depreciation method = (Cost of asset - Salvage value) / useful life
($39,000 - $9,000) / 10 = $3,000
The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the machine.
Thus, the depreciation expense in 2018 and 2019 is $3,000
Unit of activity depreciation method = (Total drinks sold in a year / total capacity of the machine ) × Cost of asset - Salvage value)
In 2018, deprecation expense =
(4,000 / 150,000 ) x $30,000 = $800
In 2019, deprecation expense =
(15,000 / 150,000 ) x $30,000 = $3,000
The double declining method =
Depreciation factor × cost of asset
Deprecation factor = 2 × (1/useful life)
2 × (1/10) = 0.2
Deprecation expense in 2018 = 0.2 × 39,000 = $7,800
Net book value = $39,000 - $7,800 = $31,200
Deprecation expense in 2019 = 0.2 × $31,200 = $6,240
I hope my answer helps you
