Teague Company purchased a new machine on January 1, 2014, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in 2014 and 110,000 units during 2015.
Required:
Determine the amount of depreciation expense to be recorded on the machine for the years 2014 and 2015 under each of the following methods:

Question

Quizplus · Accepted Answer

The Answer of Teague Company purchased a new machine on January 1, 2014, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in 2014 and 110,000 units during 2015.
Required:
Determine the amount of depreciation expense to be recorded on the machine for the years 2014 and 2015 under each of the following methods:

Teague Company Purchased a New Machine on January 1, 2014