On January 1, 2023 a machine is purchased for $100,000. It is expected to have a useful life of…

On January 1, 2023 a machine is purchased for $100,000. It is expected to have a useful life of…

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On January 1, 2023 a machine is purchased for $100,000. It is expected to have a useful life of 8 years,
during which time it is expected to be used for 20,000 hours. The salvage value is $10,000. It is used for
3,500 hours in 2023 and 4,000 hours in 2024. (The company uses the units-of-production method.)
Indicate the following. No supporting computations needed.
A)
B)
C)
2023 Depreciation Expense is: $
The balance of Accumulated Depreciation at 12/31/24 is: $
The book value at 12/31/24 is: $

Expert Answer:

Answer rating: 100% (QA)

A The annual depreciation expense can be calculated using the units of production method as follows
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