Katie's Garden Company purchased a machine on July 1,2019.The machine cost $200,000 and has an estimated residual value of $20,000.The expected useful life is 8 years.The machine is to be used for 100,000 machine hours.
Required:
1.Calculate the depreciation expense for 2019 and 2020 using the straight-line method.
2.Calculate the depreciation expense for 2019 and 2020 using the units-of-production method.The machine was used for 8,000 machine hours in 2019 and 23,000 machine hours in 2020.
3.Calculate the depreciation expense for 2019 and 2020 using the double-declining-balance method.

Question

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The Answer of Katie's Garden Company purchased a machine on July 1,2019.The machine cost $200,000 and has an estimated residual value of $20,000.The expected useful life is 8 years.The machine is to be used for 100,000 machine hours.
Required:
1.Calculate the depreciation expense for 2019 and 2020 using the straight-line method.
2.Calculate the depreciation expense for 2019 and 2020 using the units-of-production method.The machine was used for 8,000 machine hours in 2019 and 23,000 machine hours in 2020.
3.Calculate the depreciation expense for 2019 and 2020 using the double-declining-balance method.

Katie's Garden Company Purchased a Machine on July 1,2019