Reeve Corporation purchased a factory machine on JAN 1st, Year 1, for $40,000, estimated a useful...

Reeve Corporation purchased a factory machine on JAN 1st, Year 1, for $40,000, estimated a useful life of 8 years, and estimated Residual Value (Scrap Value) of $4,000.

1. Using the Straight Line Method, calculate Depreciation Expense for Years 1 thru 8. Calculate Book Value for Years Ending 1 thru 8.

2. Using the Double Declining Balance Method, calculate Depreciation Expense for Years 1 thru 8. Calculate Book Value for Years Ending 1 thru 8.

Reeve Corporation estimated the factory machine purchased on JAN 1st, Year 1, for $40,000, has a Residual Value of $4,000, and an estimated useful life of 20,000 operating hours over the 8 year life of the asset. Estimated Operating Hours: Year 1- 2,000, Year 2- 2,000, Year 3- 2,000, Year 4- 2,000, Year 5- 2,000, Year 6- 4,000, Year 7- 4,000, and Year 8- 2,000.

3.. Using the Units of Activity Method, calculate Depreciation Expense for Years 1 thru 8. Calculate Book Value for Years Ending 1-8.

Expert Solution

ekkarill92 answered 1 year ago

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