DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2005

Accounting Aug 16, 2020

DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2005. The machine is expected to have a salvage value of $2,000 at the end of it 4-year useful life.

During its useful life, the machine is expected to be used 160,000 hours. Actual annual hourly use was: year 2005, 40,000 hours; year 2006, 60,000 hours; and year 2007, 35,000 hours.

Required:

Prepare depreciation schedules for years 2005, 2006 and 2007 the following methods: (A) the straight-line, (B) units-of-activity, and (C) declining-balance using double the straight-line rate.

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