i newconnect Help SaveExit Su On October 1 2018 the Alleghen

i newconnect Help Save&Exit; Su On October 1, 2018, the Allegheny Corporation purchased machinery for $13,000. The estimated service life of the machinery is 10 years and the estimated residual value is $4,000. The machine is expected to produce 380,000 units during its life Required: Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight line. 2. Sum-of-the years-digits. 3. Double-declining balance. 0o 4. One hundred fifty percent declining balance. s. Units of production (units produced in 2018, 19,000 units produced in 2019, 34,000) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Calculate depreciation for 2018 and 2019 using straight line method. Partial-year depreciation is calculated number of months the asset is in service. Straight-Line Depreciation Choose Numerator: Choose Denominator Annual Annual Year Annual Depreciation Fraction of Year 2019 838 3 4 5 8 Ul

Solution

Straight line depreciation:

cost - salvage value = $213,000 - $4,000 = $209,000

no of years = 10 years

annual depreciation ($209,000 / 10 years ) = $20,900

year annual depreciation * Fraction of year    = Depreciation expense.

2018    $20,900    * 3/ 12 = $5,225

2019    $20,900    * 12/12    =$20,900