*Exercise 9-6 Rottino Company purchased a new machine on October 1, 2017, at a c

Question

*Exercise 9-6 Rottino Company purchased a new machine on October 1, 2017, at a cost of $133,000. The company estimated that the machine will have a salvage value of $19,500. The machine is expected to be used for 10,000 working hours during its 5- year life. Compute the depreciation expense under straight-line method for 2017. (Round answer to O decimal places, e.g. 2,125.) 2017 Depreciation expense s28,375 Compute the depreciation expense under units-of-activity for 2017, assuming machine usage was 1,500 hours. (Round depreciation cost per unit to 2 decimal places, eg. 0.50 and depreciation rate to 0 decimal places, e.g. 15% Round final answer to 2 decimal places, e.g. 2,125.25.) 2017 Depreciation expense s Compute the depreciation expense under declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to O decimal places, e.g. 2,125.) 2017 Depreciation expense s

Explanation / Answer

a) Straight line method dep for 2017 = (133000-19500/5)*3/12 = 5675

b) Unit of activity 2017 = (133000-19500/10000)*1500 = 17025

c) Double declining balance :
Straight line rate = 100/5 = 20%

Double decline rate = 20*2 = 40%

2017 dep = 133000*40%*3/12 = 13300

2018 dep = (133000*40%*9/12+133000*60%*40%*3/12) = 47880

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