contestada

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines' first year depreciation under the double-declining-balance method. Multiple Choice $66,000. $25,800. $24,000. $54,000. $48,000.

Respuesta :

abiolataiwo2015

Answer:

$24,000

Explanation:

Calculation to determine the machines' first year depreciation under the double-declining-balance method.

Using this formula

Depreciation Expense = (Cost - Salvage Value)/Estimated Useful Life

Let plug in the formula

Depreciation Expense = ($135,000 - $15,000)/5

Depreciation Expense=$120,000/5

Depreciation Expense= $24,000

Therefore the machines' first year depreciation under the double-declining-balance method is $24,000

Otras preguntas