Question:
Moyle Co. acquired a machine on January 1, 2008, at a cost of $320,000. The machine is expected to have a five-year useful life, with a salvage value of $20,000. The machine is capable of producing 300,000 units of product in its lifetime. Actual production was as follows: 60,000 units in 2008, 40,000 units in 2009, 80,000 units in 2010, 50,000 units in 2010, and 70,000 in 2012.
Required: Identify the depreciation method that would result in each of the following annual credit amount patterns to accumulated depreciation. If a declining-balance method is used, indicate the percentage (150% or 200%). What do the amounts shown for each year represent? I was able to get some, but is confused with the rest. please help
I interested in knowing how to figure out the units of production, double-decline and straight method. I get confused with which numbers to incorporate in the formula.