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Q: On January 1, 2013, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the
machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2013 and 12,000 in 2014. What is depreciation expense for 2013 if the company uses double - declining - balance depreciation? 57) A) $6,667 B) $12,000 C) $6,000 D) $13,333
A: $6000 is the declining balance depreciation. The depreciable amount = $40,000 - 4000 = $36000 In 2013, the depreciation = 36000 x 8000/24000 = $12,000 In 2014, [ [ the depreciation = 36000 x 12000/24000 = $18000 Carrying amount at the beginning of $2015 = 36000 - 30000 = $6000 ] ]
biokids513|Points 110|
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Asked 4/17/2013 8:58:40 PM
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