Practice Exercise 01 a-c
Metlock, Inc. purchased a new machine on October 1, 2020, at a cost of $122,000. The company estimated that the machine will have a
salvage value of $14,000. The machine is expected to be used for 10,000 working hours during its 4-year life.
Compute the depreciation expense under straight-line method for 2020. (Round answer to 0 decimal places, e.g. 2,125.)
Depreciation expense
$
2020
6750
Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was 1,910 hours. (Round depreciation cost
per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answer to 2 decimal
places, e.g. 2,125.25.)
Depreciation expense
$
2020
Compute the depreciation expense under declining-balance using double the straight-line rate for 2020 and 2021. (Round answers to 0
decimal places, e.g. 2,125.)
Depreciation expense
$
2020
$
2021
