Calculate depreciation for machine under diminishing-balance

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Sheridan Ltd. purchased a new machine on April 4, 2014, at a cost of $172,800. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 9,800 working hours during its four-year life. Actual machine usage was 1,500 hours in 2014; 2,200 hours in 2015; 2,400 hours in 2016; 1,900 hours in 2017; and 1,800 hours in 2018. Sheridan has a December 31 year end.

Question (a) Calculate depreciation for the machine under Diminishing-balance using double the straight-line rate for 2014 through to 2018.

Question (b) Calculate depreciation for the machine under Units-of-production for 2014 through to 2018.

Reference no: EM132488654

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