Determine the useful life of trucks


Response to the following questions:

1. Feng Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300. The machine's useful life is estimated at 10 years, or 363,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 35,000 units of product. Determine the machine's second-year depreciation under the straight-line method.

2. A fleet of refrigerated delivery trucks is acquired on January 5, 2011, at a cost of $930,000 with an estimated useful life of eight years and an estimated salvage value of $150,000. Compute the depreciation expense for the first three years using the double-declining-balance method.

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Accounting Basics: Determine the useful life of trucks
Reference No:- TGS02135613

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