On January 1, 2019, Wild Blue Company purchased for $400,000 a new machine that has an estimated useful life of four years (or 660,000 cutting operations), after which the expected salvage value is $40,000.
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 99,000 cutting operations were made in 2019

Question

On January 1, 2019, Wild Blue Company purchased for $400,000 a new machine that has an estimated useful life of four years (or 660,000 cutting operations), after which the expected salvage value is $40,000. 
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 99,000 cutting operations were made in 2019

Quizplus · Accepted Answer

The Answer of On January 1, 2019, Wild Blue Company purchased for $400,000 a new machine that has an estimated useful life of four years (or 660,000 cutting operations), after which the expected salvage value is $40,000. 
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 99,000 cutting operations were made in 2019

On January 1, 2019, Wild Blue Company Purchased for $400,000