For your analysis you have been asked to compare methods bas

For your analysis, you have been asked to compare methods based on a machine that cost $176,000. The estimated useful life is 10 years, and the estimated residual value is $33,440. The machine has an estimated useful life in productive output of 216,000 units. Actual output was 28,000 in year 1 and 24,000 in year 2. Required: 1. For years 1 and 2 only, prepare separate depreciation schedules assuming: (Do not round intermediate calculations and round your final answers to the nearest dollar amount.) a. double declining method. Use exact numbers please

Solution

Double Declining rate = 1/10*2 0.2 20% year Beginning Rate Depreciation Accumulated Book balance expense Dep Value 1 176,000 20% 35200 35,200 140800 2 140,800 20% 28160 63,360 112,640