Compute depreciation charge

Reference no: EM1361638

Pemberton Corp. purchased a machine costing $300,000 that had an estimate useful life of six years and residual value of $18,000. The machine is expected to produce 3,525,000 units during its useful life, as follow:

YEAR UNITS
1 930,000
2 800,000
3 580,000
4 500,000
5 415,000
6 300,000
3,525,000

a. What will be each year's depreciation charge if Pemberton uses the units-of production method?
b. Will this give significantly different depreciation charges in each year than the sum-of-the-years' digits method?

Reference no: EM1361638

Questions Cloud

Compute the price and quantity of equilibrium in country : Compute the price and quantity of equilibrium in each country when both country A and country B are closed economies.

Understanding of disease causation : What were the major "breakthroughs" that contributed to a more scientific understanding of disease causation?

Small business management on valentines day : Find a story of small business that is significantly impacted by Valentine's Day and find a story of small business located in Nebraska that is significantly impacted by Valentine's Day.

Where would a third positive charge of the same magnitude : A curve with a 140 radius on a level road is banked at the correct angle for a speed of 20 . If an automobile rounds this curve at 30 , what is the minimum coefficient of static friction between tires and road needed to prevent skidding.

Compute depreciation charge : Pemberton Corporation bought a machine costing $300,000 that had an estimate useful life of 6-years and residual value of $18,000. The machine is expected to produce 3,525,000 units during its useful life;

Illustrate what happens to your tax bill and to your average : Illustrate what happens to your tax bill and to your average and marginal tax rates if your income rises to $40,000.

Show risk management in contracts : Risk Management in Contracts - What are the different types of contracts and how do they impact risk?

What is the response time for jobs in observed system : We observe a closed system for 30 minutes, during which 1600 tasks are completed, from 12 terminals. Each terminal (source of tasks). What is the response time for jobs in the observed system?

Why us health care system is good : Describe five health issues we might face over the next 20 years, and provide solutions to those problems. List and describe briefly five reasons why, the U.S. health care system is good.

User Account

All Pages