On January 1, 2009, Pung Manufacturing Company purchased for $94,000 a machine that will produce an estimated 75,000 units of Product X. The machine has an estimated useful life of five years and an estimated residual value of $4,000. Calculate the following amounts: (a) the carrying value of the machine after it has been used for three and one-half years, under the straight-line method; (b) depreciation expense for 2010, under the production method (assume that 13,000 units were produced that year); and (c) accumulated depreciation at the end of 2010, under the double-declining-balance method. (Show your work.)

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2009, Pung Manufacturing Company purchased for $94,000 a machine that will produce an estimated 75,000 units of Product X. The machine has an estimated useful life of five years and an estimated residual value of $4,000. Calculate the following amounts: (a) the carrying value of the machine after it has been used for three and one-half years, under the straight-line method; (b) depreciation expense for 2010, under the production method (assume that 13,000 units were produced that year); and (c) accumulated depreciation at the end of 2010, under the double-declining-balance method. (Show your work.)

On January 1, 2009, Pung Manufacturing Company Purchased for $94,000