Katie's Garden Company purchased a machine on June 1,2014.The machine cost $200,000 and has a residual value of $20,000 and an estimated useful life of 8 years.The machine is expected to last 100,000 machine hours.
Required:
1.Calculate the depreciation expense for 2014 and 2015 using the straight-line method.
2.Calculate the depreciation expense for 2014 and 2015 using the units-of-production method.The machine was used for 8,000 machine hours in 2014 and 23,000 machine hours in 2015.
3.Calculate the depreciation expense for 2014 and 2015 using the double-declining-balance method.

Question

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The Answer of Katie's Garden Company purchased a machine on June 1,2014.The machine cost $200,000 and has a residual value of $20,000 and an estimated useful life of 8 years.The machine is expected to last 100,000 machine hours.
Required:
1.Calculate the depreciation expense for 2014 and 2015 using the straight-line method.
2.Calculate the depreciation expense for 2014 and 2015 using the units-of-production method.The machine was used for 8,000 machine hours in 2014 and 23,000 machine hours in 2015.
3.Calculate the depreciation expense for 2014 and 2015 using the double-declining-balance method.

Katie's Garden Company Purchased a Machine on June 1,2014