Identify depreciation methods used Moyle Co. acquired a machine on January 1, 2010, 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 2010; 40,000 units in 2011; 80,000 units in 2012; 50,000 units in 2013; and 70,000 units in 2014.
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%).
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a. |
c. |
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60,000 |
12/31/10 |
128,000 |
12/31/10 |
|||
|
40,000 |
12/31/11 |
76,800 |
12/31/11 |
|||
|
80,000 |
12/31/12 |
46,080 |
12/31/12 |
|||
|
50,000 |
12/31/13 |
27,648 |
12/31/13 |
|||
|
70,000 |
12/31/14 |
16,588 |
12/31/14 |
|||
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b. |
d. |
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|
96,000 |
12/31/10 |
|
|
60,000 |
12/31/10 |
|
|
67,200 |
12/31/11 |
|
|
60,000 |
12/31/11 |
|
|
47,020 |
12/31/12 |
|
|
60,000 |
12/31/12 |
|
|
32,928 |
12/31/13 |
|
|
60,000 |
12/31/13 |
|
|
23,050 |
12/31/14 |
|
|
60,000 |
12/31/14 |
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