Question 5) Patty Company purchased a new machine on August 1, 2023, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life. Instructions: A) Compute the depreciation expense under the straight-line method for 2023, 2027, and 2030, assuming a December 31 year-end. B) Compute the depreciation expense under the double-declining balance method for 2023 and 2024. Assume the DDB rate is 100% / 7 years x 2=28.57% (use this rate for your computations) C) Compute the depreciation expense under the units-of-activity method for 2023, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.) Question 6) Wourare Co has delivery aminment that part $68.000 and has been depreciated $31.055.

Question 5) Patty Company purchased a new machine on August 1, 2023, at a cost of $131,000. The company estimated that the machine has a salvage value of $51,452, is expected to be used for 66,290 working hours, and will have a 7-year life. Instructions: A) Compute the depreciation expense under the straight-line method for 2023, 2027, and 2030, assuming a December 31 year-end. B) Compute the depreciation expense under the double-declining balance method for 2023 and 2024. Assume the DDB rate is 100% / 7 years x 2=28.57% (use this rate for your computations) C) Compute the depreciation expense under the units-of-activity method for 2023, assuming machine usage was 4,444 hours. (record depreciation per unit to the nearest cent.) Question 6) Wourare Co has delivery aminment that part $68.000 and has been depreciated $31.055.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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