(Depreciation for Partial PeriodsAc€??SL, Act., SYD, and DDB) On January 1, 2012, a machine was
purchased for $90,000. The machine has an estimated salvage value of $6,000 and an estimated useful life
of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed
its books on December 31 and operates the machine as follows: 2012, 20,000 hours; 2013, 25,000 hours; 2014,
15,000 hours; 2015, 30,000 hours; and 2016, 10,000 hours.
Instructions
(a) Compute the annual depreciation charges over the machineAc€?cs life assuming a December 31 year-end
for each of the following depreciation methods.
(1) Straight-line method. (3) Sum-of-the-yearsAc€?c-digits method.
(2) Activity method. (4) Double-declining-balance method.
(b) Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the
assetAc€?cs life applying each of the following methods.
(1) Straight-line method. (3) Double-declining-balance method.
(2) Sum-of-the-yearsAc€?c-digits method.