The double straight line rate for 2015 and 2016


Rottino Company purchased a new machine on October 1, 2015, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Compute the depreciation expensive under the following methods.

A. Straight Line for 2015

B. Units of Activity for 2015, assuming machine usage was 1,700 hours

C. Declining-balance using the double straight line rate for 2015 and 2016

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Accounting Basics: The double straight line rate for 2015 and 2016
Reference No:- TGS0680094

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