Straight line method and units of production

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Reference no: EM131204840

On 1/1/2016 Trublood, Inc. purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a residual value $3,000. Assume that the units produced by the machine will total 16,000 during 2016, 23,000 during 2017, and 21,000 during 2018. On 1/1/2017, the machine was rebuilt at a cost of $7,000. After it was rebuilt, the total estimated life of the machine was increased to 5 years (from the original estimate of 3 years) and the residual value to $6,000 (from $3,000). Assume that the company chose the straigt-line method for depreciation. -depreciation expense and book value for each year using 1. straight line method 2.units of production 3.double-declining-balance

Reference no: EM131204840

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