Amy's Garden Company purchased a machine on June 6, 2011. The machine cost $100,000 and has a residual value of $10,000 and an estimated useful life of 5 years. The machine is expected to last 50,000 machine hours.
REQUIRED:
1. Calculate the depreciation expense for 2011 and 2012 using the straight-line method.
2. Calculate the depreciation expense for 2011 and 2012 using the units-of-production method. The machine was used for 8,000 machine hours in 2011 and 23,000 machine hours in 2012.
3. Calculate the depreciation expense for 2011 and 2012 using double-declining- balance depreciation

Question

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The Answer of Amy's Garden Company purchased a machine on June 6, 2011. The machine cost $100,000 and has a residual value of $10,000 and an estimated useful life of 5 years. The machine is expected to last 50,000 machine hours.
REQUIRED:
1. Calculate the depreciation expense for 2011 and 2012 using the straight-line method.
2. Calculate the depreciation expense for 2011 and 2012 using the units-of-production method. The machine was used for 8,000 machine hours in 2011 and 23,000 machine hours in 2012.
3. Calculate the depreciation expense for 2011 and 2012 using double-declining- balance depreciation

Amy's Garden Company Purchased a Machine on June 6, 2011