Depreciation computations


Alpha, a college fraternity, bought a new heavy-duty washing machine on January 1, 20X3. The machine, that cost $2,000, had an estimated residual value of $100 and an estimated service life of 4 years (1,800 washing cycles). Compute the given:

a) The machine's book value on December 31, 20X5, supposing the use of straight-line depreciation method.

b) Depreciation expense for 20X4, supposing use of the units-of-output depreciation method. Actual washing cycles in 20X4 totaled 500.

c) Accumulated depreciation on December 31, 20X5, supposing use of the double-declining-balance depreciation process.

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Other Subject: Depreciation computations
Reference No:- TGS018544

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