Covey Company purchased a machine on January 1,2010,by paying cash of $250,000.The machine has an estimated useful life of five years,is expected to produce 500,000 units,and has an estimated residual value of $25,000.
Requirements:
A.Calculate determine depreciation expense (to the nearest dollar) for each year of the machine's useful life under (1.) straight-line depreciation; and (2.) the 200% declining balance method.
B.What is the book value of the machine after three years using the 200% declining- balance method?
C.What is the book value of the machinery after three years with straight-line depreciation?
D.If the machine was used to produce and sell 120,000 units in 2010, what would the depreciation expense be under the units of production method?

Question

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The Answer of Covey Company purchased a machine on January 1,2010,by paying cash of $250,000.The machine has an estimated useful life of five years,is expected to produce 500,000 units,and has an estimated residual value of $25,000.
Requirements:
A.Calculate determine depreciation expense (to the nearest dollar) for each year of the machine's useful life under (1.) straight-line depreciation; and (2.) the 200% declining balance method.
B.What is the book value of the machine after three years using the 200% declining- balance method?
C.What is the book value of the machinery after three years with straight-line depreciation?
D.If the machine was used to produce and sell 120,000 units in 2010, what would the depreciation expense be under the units of production method?

Covey Company Purchased a Machine on January 1,2010,by Paying Cash