On January 1, Hill Company purchased for $60,000 a new machine that has an estimated useful life of eight years (or 500,000 stamping operations), after which the expected salvage value is $2,400.
Under each of the following depreciation methods, calculate the depreciation expense for the second year.
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 70,000 stamping operations were made in the second year.

Question

On January 1, Hill Company purchased for $60,000 a new machine that has an estimated useful life of eight years (or 500,000 stamping operations), after which the expected salvage value is $2,400. 
Under each of the following depreciation methods, calculate the depreciation expense for the second year.
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 70,000 stamping operations were made in the second year.

Quizplus · Accepted Answer

The Answer of On January 1, Hill Company purchased for $60,000 a new machine that has an estimated useful life of eight years (or 500,000 stamping operations), after which the expected salvage value is $2,400. 
Under each of the following depreciation methods, calculate the depreciation expense for the second year.
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 70,000 stamping operations were made in the second year.

On January 1, Hill Company Purchased for $60,000 a New