Your Task COMPLETE ON SPREAD SHEET
SHOW FORMULAS
Red Company purchased a machine on January 1, 2018.
Cost $210,000
Residual value 24,000
Useful life in years 5 *
Useful life in hours 25,000
*Write the formulas assuming useful life in years will always befive years Useful life in hours 25,000 but that the other threeamounts given may vary.
Determine the annual depreciation expense under each of fourdepreciation methods
| Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 |
| Hours used | 4,800 | 4,900 | 5,200 | 5,500 | 5,300 |
| Straight line | | | | | |
| Units of production | | | | | |
| Double-declining balance | | | | | |
| Sum-of-the-years’-digits | | | | | |
Determine the machine's book value at the endof each year under each of the four depreciation methods
| Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2022 |
| | | | | |
| Straight line | | | | | |
| Units of production | | | | | |
| Double-declining balance | | | | | |
| Sum-of-the-years’-digits | | | | | |
