A new machine costs $120,000, has an estimated usefullife of five years and an estimated salvage value of $15,000 at theend of that time. It is expected that the machine can produce210,000 widgets during its useful life.
The New Times Company purchases this machine on January1, 2017, and uses it for exactly three years. During these yearsthe annual production of widgets has been 80,000, 50,000, and30,000 units, respectively. On January 1, 2020, the machine is soldfor $45,000.
Required:
- Straight-line
- Units-of-production
- Double-declining-balance
2. Preparethe proper journal entry for the sale of the machine under thethree different depreciation methods.
