Question

Q1.   Depreciation Methods:

 

As the Manager of TAMCC Hotel, Inc., - Restaurant and Bar, you just purchased a doughnut making machine for $100,000. It has a salvage value of $10,000 and the useful life of 5 years. The machine is expected to produce 360,000 doughnuts: 70,000 in year 1; 80,000 in year 2; 90,000 in year 3; 70,000 in year 4; and 50,000 year 5.

 

i.                  Calculate the annual depreciation expense using the FIVE methods.

 

Select one method and show how it will be recorded in the Final Accounts

Answer 1

solved in Excel:

Debit main production credit depreciation - 18000 (1)