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Question - A company purchases a machine for $302,400 on January 1. It has an estimated residual value of $14,400 and an estimated useful life of 14,400 hours. The machine was used as follows:
Year 1 3,000 hours
Year 2 3,900 hours
Year 3 4,200 hours
Year 4 4,600 hours
Determine the amount of depreciation expense for the FOURTH year.
Compute the cost of goods sold for the year ended December 31, 2007, and the ending inventory under the following cost assumptions:
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