Question

Simpson Company purchased a new machine for $80,000 on January 1, 2017. The machine has an expected salvage value of $5,000, and is expected to used 187,500 hours over its estimated useful life of 15 years. Actual hours used were 11,000 in 2017 and 13,000 in 2018. Determine the following:

________________ Depreciation expense for 2017 under the straight-line method

________________ Depreciation expense for 2018 under the straight-line method

________________ Book value at the end of 2018 under the straight-line method

________________ Depreciation expense for 2017 under the units-of-activity method

________________ Depreciation expense for 2017 under the declining balance method

________________ Depreciation expense for 2018 under the declining balance method

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.