Business
03.02.2021 22:03
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Blossom Company purchased a new machine on October 1, 2017, at a cost of $66,000.

Blossom Company purchased a new machine on October 1, 2017, at a cost of $66,000. The company estimated that the machine has a salvage value of $5,700. The machine is expected to be used for 70,000 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end. (Round answers to 0 decimal places, e.g. 5,275.)
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jackienassiri
jackienassiri
4,6(31 marks)

Results are below.

Explanation:

Giving the following information:

Purchase price= $66,000

Salvage value= $5,700

Useful life= 6

First, we need to calculate the annual depreciation using the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (66,000 - 5,700) / 6= 10,050

2017:

Annual depreciation= (10,050/12)*3= $2,512.5

2018:

Annual depreciation= $10,050

desiree98
desiree98
5,0(47 marks)
C. how much one unit of currency is worth when converted to another currency. Hence why you look at the exchange rate whenever you travel overseas!

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