On January 1, 2019, Chelsea Company purchased for $180,000 a new machine that has an estimated useful life of ten years (or 550,000 stamping operations), after which the expected salvage value is $10,000.
Under each of the following depreciation methods, calculate the depreciation expense for 2019.
Required:
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 66,000 stamping operations were made in 2019

Question

On January 1, 2019, Chelsea Company purchased for $180,000 a new machine that has an estimated useful life of ten years (or 550,000 stamping operations), after which the expected salvage value is $10,000. 
Under each of the following depreciation methods, calculate the depreciation expense for 2019.
Required:
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 66,000 stamping operations were made in 2019

Quizplus · Accepted Answer

The Answer of On January 1, 2019, Chelsea Company purchased for $180,000 a new machine that has an estimated useful life of ten years (or 550,000 stamping operations), after which the expected salvage value is $10,000. 
Under each of the following depreciation methods, calculate the depreciation expense for 2019.
Required:
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 66,000 stamping operations were made in 2019

On January 1, 2019, Chelsea Company Purchased for $180,000 a New