Question

Cheyenne Company purchased a new machine on September 1, 2022, at a cost of $128,000. The company estimated that the machine will have a salvage value of $13,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Name: Cheyenne Company purchased a new machine on September 1, 2022, at a cost of 128,000. The company estimated that the machine will have a salvage value of13,000. The machine is expected to be used for 10,000 working hours during its 5-year life.
Uploaded: 2022-11-30T00:32:14-08:00
Duration: 1 min 36 s
Channel: Brooke Bussoletti
Description: Cheyenne Company purchased a new machine on September 1, 2022, at a cost of 128,000. The company estimated that the machine will have a salvage value of13,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

          Cheyenne Company purchased a new machine on September 1, 2022, at a cost of $128,000. The company estimated that the machine will have a salvage value of $13,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Cheyenne Company purchased a new machine on September 1, 2022, at a cost of 128,000. The company estimated that the machine will have a salvage value of13,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Added by Patrick B.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Brooke Bussoletti

11/30/2022

Step 1

The straight-line depreciation rate is calculated as (Cost - Salvage Value) / Useful Life. So, (128,000 - 13,000) / 5 = 23,000 / 5 = 4,600. The declining-balance rate is double the straight-line rate, so 4,600 * 2 = 9,200. Show more…

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Cheyenne Company purchased a new machine on September 1, 2022, at a cost of $128,000. The company estimated that the machine will have a salvage value of $13,000. The machine is expected to be used for 10,000 working hours during its 5 -year life. Compute the depreciation expense under the Declining-balance using double the straight-line rate for 2022, 2023 , and 2024. (Round answers to 0 decimal places, e.g. 15250.) Depreciation expense for: 2022 2023 2024 Cheyenne Company purchased a new machine on September 1,2022.at a cost of $128.000.The company estimated that the machine will have a salvage value of $13,000.The machine is expected to be used for 10,000 working hours during its 5-year life