On January 1, 2018, Tyson manufacturing corporation purchased a machine for $40,
ID: 2520787 • Letter: O
Question
On January 1, 2018, Tyson manufacturing corporation purchased a machine for $40,400,000. Tyson’s management expects to use the machine for 26,000 hours over the next six years. The estimated residual value of the machine at the end of the six year is $41,000. The machine was used for 4,600 hours in 2018 and 5,600 hours in 2019. What is the depreciation expense for 2018 if the corporation uses the units- of- production method of depreciation? (round any intermediate calculations to two decimals places, and your final answer to the nearest dollar)
A)$8,692,712
B)$7,147,710
C)$13,466,667
D)$7,140,442
The cost of an asset is $1,180,000, and its residual is $180,000. Estimated useful life of the assets is ten years. Calculate depreciation for the first year using the double –declining- balance method of depreciation (do not round any intermediate calculations, and round your final answer to the nearest dollar. )
A)$236,000
B)$100,000
C)$118,000
D)$200,000
Explanation / Answer
1 Depreciation per hour=(40400000-41000)/26000= $1552.27 Depreciation expense for 2018=4600*1552.27= $7140442 2 Depreciation for first year=1180000*20%= $236000