| Depreciation methods |
| Rockport corporation purchased a new piece of equipment on January 1st of this year. Other information about the machine is listed in the table below. Note that the actual units produced exceed the estimate, but the machine cannot be depreciated below its salvage value |
| Machine Cost | 312,500 |
| Useful life | 5 |
| Salvage Value | 22,000 |
| Total estimated units | 514,000 |
| Actual units year 1 | 124,500 |
| Actual units year 2 | 127,300 |
| Actual units year 3 | 119,750 |
| Actual units year 4 | 131,250 |
| 1 | Calculate the Straight line Depreciation |
| Machine Cost |
| Salvage Value |
| Depreciable Basis |
| Useful life |
| Deprecation per year |
| 2 | Calculate Depreciation using Units of Production |
| Machine Cost | - 0 |
| Salvage Value |
| Depreciable Basis |
| Total estimated units |
| Depreciation per unit |
| Year | Units | Depreciation per unit | Annual depreciation |
| 1 |
| 2 |
| 3 |
| 4 |
| Total Depreciation |
| 3 | Calculate Depreciation using Double Declining Balance |
| Straight line deprecation rate |
| 2 |
| double declining balance rate |
| Year | Begining of year Book value | rate | Depreciation Expense | Accumlated Deprecation |
| 1 |
| 2 |
| 3 |
| 4 |
brandon282011
AC216Unit3Assignment4-DepreciationMethods.xlsx
