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Business, 23.04.2020 15:51 HOTaco554

On January 1, 2015, a machine was purchased for $110,700. The machine has an estimated salvage value of $7,380 and an estimated useful life of 5 years. The machine can operate for 123,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 24,600 hrs; 2016, 30,750 hrs; 2017, 18,450 hrs; 2018, 36,900 hrs; and 2019, 12,300 hrs.

A. Compute the annual depreciation charges over the machine’s life assuming a December 31 year-end for each of the following depreciation methods.

i. Sum of the Years' Digits Method 2015-2019
ii. Double Declining Balance Method 2015-2019

B. Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset’s life applying each of the following methods.
Straight Line Method, Sum of the Years' Digits Method, Double Declining Balance Method for the years 2015-2020.

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