Machinery purchased on January 1, 2011:
Cost of machinery 250,000
Estimated residual value 10,000
Estimated useful life:
Years 6 years
Units of production 200,000 machine hours
Required:
Calculate depreciation at each year end that applies:
1) Straight-line method
2) Units of production method
Assumption: Machinery machine hours on the 1st year, 66,000; 2nd year, 60,000; 3rd year, 38,000; 4th year, 22,000; 5th year, 8,000; and 6th year, 6,000
3) Double-declining method