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    Instructions: E10-6 Determine Depreciation For Partial Periods

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    Risky Fernando
    The document provides information about a machine purchased by Rottino Company on October 1, 2017 for $150,000. The machine is expected to have a salvage value of $12,000 after 5 years of use and last 10,000 working hours. It instructs to calculate depreciation expense for 2017 using straight-line, units-of-activity, and double declining balance methods.

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    Instructions: E10-6 Determine Depreciation For Partial Periods

    Uploaded by

    Risky Fernando
    1K views2 pages
    The document provides information about a machine purchased by Rottino Company on October 1, 2017 for $150,000. The machine is expected to have a salvage value of $12,000 after 5 years of use and last 10,000 working hours. It instructs to calculate depreciation expense for 2017 using straight-line, units-of-activity, and double declining balance methods.

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    Rottino Company

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    The document provides information about a machine purchased by Rottino Company on October 1, 2017 for $150,000. The machine is expected to have a salvage value of $12,000 after 5 years of use and last 10,000 working hours. It instructs to calculate depreciation expense for 2017 using straight-line, units-of-activity, and double declining balance methods.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    1K views2 pages

    Instructions: E10-6 Determine Depreciation For Partial Periods

    Uploaded by

    Risky Fernando
    The document provides information about a machine purchased by Rottino Company on October 1, 2017 for $150,000. The machine is expected to have a salvage value of $12,000 after 5 years of use and last 10,000 working hours. It instructs to calculate depreciation expense for 2017 using straight-line, units-of-activity, and double declining balance methods.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    E10-6 Determine depreciation for partial periods

    Rottino Company purchased a new machine on October 1, 2017, 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.

    Instructions
    Compute the depreciation expense under the following methods for the year indicated.
    (a) Straight-line for 2017.
    (b) Units-of-activity for 2017, assuming machine usage was 1,700 hours.
    (c) Declining-balance using double the straight-line rate for 2017 and 2018.
    NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells wi

    A. Straight-line method

    15.0000-12.000 = 138,000
    138.000 / 5 = 27,600
    690.000 x 3/12 = $6,900

    B. Units of activity method

    (150.000 - 12.000)/10.000 = 13.8


    1.700 x 13,8 = $234,600

    C. Double declining balance method

    2017 150.000x40%x(3/12) = $15,000


    2018 Book value 2018 = 150.000-15.000 = 135000
    135.000x40% = $54,000
    r a formula in cells with a "?" .

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