On January 1, 2019, WV Hills Company purchased for $180,000 a new machine that has an estimated useful life of eight years (or 500,000 stamping operations), after which the expected salvage value is $7,200.
Under each of the following depreciation methods, calculate the depreciation expense for 2020.
Required:
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 70,000 stamping operations were made in 2020

Question

On January 1, 2019, WV Hills Company purchased for $180,000 a new machine that has an estimated useful life of eight years (or 500,000 stamping operations), after which the expected salvage value is $7,200. 
Under each of the following depreciation methods, calculate the depreciation expense for 2020.
Required:
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 70,000 stamping operations were made in 2020

Quizplus · Accepted Answer

The Answer of On January 1, 2019, WV Hills Company purchased for $180,000 a new machine that has an estimated useful life of eight years (or 500,000 stamping operations), after which the expected salvage value is $7,200. 
Under each of the following depreciation methods, calculate the depreciation expense for 2020.
Required:
a. Straight-line depreciation
b. Double-declining balance depreciation
c. Units-of-production depreciation, if 70,000 stamping operations were made in 2020

On January 1, 2019, WV Hills Company Purchased for $180,000