Schrade Company bought a machine for $115,000 cash. The estimated useful life wa

Question

Schrade Company bought a machine for $115,000 cash. The estimated useful life was four years, and the estimated residual value was $6,640. Assume that the estimated useful life in productive units is 129,000. Units actually produced were 52,000 in year 1 and 54,000 in year 2.

Determine the appropriate amounts to complete the following schedule. (Round your answers to the nearest dollar amount. Do not round intermediate calculations.)

Determine the appropriate amounts to complete the following schedule. (Round your answers to the nearest dollar amount. Do not round intermediate calculations.)

Explanation / Answer

Cost of machine 115000 Salvage value 6640 Productive units 129000 year 1 units produced 52000 year 2 units produced 54000 Straight line method year Net book value depreciation Net bookvalue at the end of year 1 115000 27090 87910 2 87910 27090 60820 54180 Units of Production year Net book value depreciation Net bookvalue at the end of year 1 115000 43680 71320 2 87910 45360 42550 89040 Double Declining Depreciation method year Net book value depreciation Net bookvalue at the end of year 1 115000 57500 57500 2 87910 43955 43955 101455

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