edugen.wileyplus.com E RUNNING HEAD IN 50 C… Business Communication-Term Project

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edugen.wileyplus.com E RUNNING HEAD IN 50 C… Business Communication-Term Project Topics WileyPLUS CALCULATOR PRINTER VERSION BACK ES Exercise 9-19 Deloise Company purchased a new machine on October 1, 2012, at a cost of $93,230. The company estimated that the machine has a salvage value of $8,620. The machine is expected to be used for 62,790 working hours during its 8-year life. Compute depreciation using the following methods in the year indicated (a) Declining-balance using double the straight-line rate for 2012 and 2013. (Round answers to 0 decimal places, o.g. 125) Depreciation using the Declining-balance method Show Work is REQUIRED for this question: Open Show Work LINK TO TEXT Attempts: O of 5 used SAVE FOR LATER SUBMIT A The parts of this question must be completed in order. This part wia be avaiable when you complete the part above Copyright © 2000, 2016 by John wley & Sons, Inc. or reared compares. All rights reserved.

Explanation / Answer

a) Declining Balance method using double straight line rate for 2012-2013 (100%/8 yrs)*2 =25% depreciation rate. 2012 Three months of depreciation 93230*25%*3/12=5827 dep expense For the first nine months of the year 93230*25%*9/12=17480 dep expense 92320-17480=74840 New book value For the last three months of the year 74840*25%*3/12=4678 Dep expense 17480+4678=22158 total dep exp for 2013 Units of activity for 2012,assuming machine usage was 2531 (Round dep cost per unit to 2 decimal places eg 2.50 to calculate dep) 93230-8620=84610/62790 hrs=1.35 dep per hour 2531*1.35=3417 dep expense

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