Solution-Identify depreciation method use for preceding

Identify depreciation method use for preceding balance sheet

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Reference no: EM13891055

Identify depreciation methods used Grove Co. acquired a production machine on January 1, 2013, at a cost of $240,000. The machine is expected to have a four-year useful life, with a salvage value of $40,000. The machine is capable of producing 50,000 units of product in its lifetime. Actual production was as follows: 11,000 units in 2013; 16,000 units in 2014; 14,000 units in 2015; and 9,000 units
in 2016.

Following is the comparative balance sheet presentation of the net book value of the production machine at December 31 for each year of the asset's life, using three alternative depreciation methods (items a-c):

Production Machine, Net of Accumulated Depreciation At December 31
Depreciation Method	2016	2015	2014	2013
a.	40,000	76,000	132,000	196,000
b.	40,000	40,000	60,000	120,000
c.	40,000	90,000	140,000	190,000

Required:

Identify the depreciation method used for each of the preceding comparative balance sheet presentations (items a-c). If a declining-balance method is used, be sure to indicate the percentage (150% or 200%).

Reference no: EM13891055

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Identify depreciation method use for preceding balance sheet

Reference no: EM13891055

Reference no: EM13891055

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