University of Belize
Intermediate Assignment # 2 – DEPR METHODS
Jan 2023
On January 1, 2016, the Allegheny Corporation purchased machinery for $115,000. The
estimated service life of the machinery is 10 years, and the estimated residual value is $5,000.
The machine is expected to produce 220,00 units during its life.
Required:
Calculate depreciation for 2016 and 2017 using each of the following methods. Round all computations
to the nearest dollar.
1. Straight line.
2. Sum-of-the-years’-digits.
3. Double-declining balance.
4. One hundred fifty percent declining balance.
5. Units of production (units produced in 2016, 30,000; units produced in 2017, 25,000).