On July 1, Boise Systems Company purchased for $27,000 a new machine that has an estimated useful life of six years (or 300,000 cutting operations), after which the expected salvage value is $1,800.
Under each of the following depreciation methods, calculate the depreciation expense for the second year of ownership.
a. Straight-line depreciation
b. Double declining-balance depreciation
c. Units-of-production depreciation, if 55,000 cutting operations were made in year 2.

Question

On July 1, Boise Systems Company purchased for $27,000 a new machine that has an estimated useful life of six years (or 300,000 cutting operations), after which the expected salvage value is $1,800. 
Under each of the following depreciation methods, calculate the depreciation expense for the second year of ownership.
a. Straight-line depreciation
b. Double declining-balance depreciation
c. Units-of-production depreciation, if 55,000 cutting operations were made in year 2.

Quizplus · Accepted Answer

The Answer of On July 1, Boise Systems Company purchased for $27,000 a new machine that has an estimated useful life of six years (or 300,000 cutting operations), after which the expected salvage value is $1,800. 
Under each of the following depreciation methods, calculate the depreciation expense for the second year of ownership.
a. Straight-line depreciation
b. Double declining-balance depreciation
c. Units-of-production depreciation, if 55,000 cutting operations were made in year 2.

On July 1, Boise Systems Company Purchased for $27,000 a New