Shamrock Corporation purchased a new machine for its assembly process on August

Question

Shamrock Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $139,122. The company estimated that the machine would have a salvage value of $15,222 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 19,800 hours. Year-end is December 31.

Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.)

Explanation / Answer

Sum of year digit = 5+4+3+2+1 = 15

2018 Dep = (139122-15222*5/15*7/12)+(139122-15222*4/15*5/12) = 37858

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