Question

Wildhorse Ltd. purchased a new machine on April 4, 2017, at a cost of $180,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 12,960 working hours during its four-year life. Actual machine usage was 1,300 hours in 2017; 1,900 hours in 2018; 2,500 hours in 2019; 1,900 hours in 2020; and 2,100 hours in 2021. Wildhorse has a December 31 year end.

(a)

Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.)

(1) Straight-line for 2017 through to 2021.

2017 expense		$enter a dollar amount
2018 expense		$enter a dollar amount
2019 expense		$enter a dollar amount
2020 expense		$enter a dollar amount
2021 expense		$enter a dollar amount

(2) Diminishing-balance using double the straight-line rate for 2017 through to 2021.

2017 expense		$enter a dollar amount
2018 expense		$enter a dollar amount
2019 expense		$enter a dollar amount
2020 expense		$enter a dollar amount
2021 expense		$enter a dollar amount

(3) Units-of-production for 2017 through to 2021.

2017 expense		$enter a dollar amount
2018 expense		$enter a dollar amount
2019 expense		$enter a dollar amount
2020 expense		$enter a dollar amount
2021 expense		$enter a dollar amount

Answer 1