Rita pita company bought a new dough machine at thebeginning of the yar at ta cost of $7600. the estimated useful lifewas four years and the residual value was $800. assume that theestimated productive life of the machines was 10000 hours. actualannual usage was 3500 hours in year 1. 3200 hours in year 2. 2200hours in year 3. 1100 in years 4.
complete a separeate depreciation schedule for each of the alternative methods. u can round your answers to nearsdollar.
a. stright line
b. units of production
c. double delining balance
method:
year computation depreciation expense accumulation expense net book value
2. assuming that the machine was used directly in the production of one of the products that the company manufactures and sells, what factors might managment consider in selecting apreferable depreciation method in conformity with the matching principle?