Big Valley Ltd.purchased machinery on January 2,2016,at a total cost of $85,000.The machinery's estimated useful life is 8 years or 60,000 hours,and its residual value is $5,000.During 2016 and 2017,the machinery was used 7,000 and 7,500 hours,respectively.
Compute depreciation under straight-line,units-of-production,and double-declining-balance methods for 2016 and 2017.
Double-declining-balance

Question

Big Valley Ltd.purchased machinery on January 2,2016,at a total cost of $85,000.The machinery's estimated useful life is 8 years or 60,000 hours,and its residual value is $5,000.During 2016 and 2017,the machinery was used 7,000 and 7,500 hours,respectively.
Compute depreciation under straight-line,units-of-production,and double-declining-balance methods for 2016 and 2017.
  Double-declining-balance

Quizplus · Accepted Answer

The Answer of Big Valley Ltd.purchased machinery on January 2,2016,at a total cost of $85,000.The machinery's estimated useful life is 8 years or 60,000 hours,and its residual value is $5,000.During 2016 and 2017,the machinery was used 7,000 and 7,500 hours,respectively.
Compute depreciation under straight-line,units-of-production,and double-declining-balance methods for 2016 and 2017.
  Double-declining-balance