ACC 205 Week 3 Exercise 6 Depreciation computations

ACC 205 Week 3 Exercise 6 Depreciation computations

Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost $1,000, had an estimated residual value of $100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following:

  1. The machine’s book value on December 31, 20X5, assuming use of the straight-line depreciation method
  2. Depreciation expense for 20X4, assuming use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500.
  3. Accumulated depreciation on December 31, 20X5, assuming use of the double-declining-balance depreciation method.

 

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