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Han Company

Han Company purchased a new machine on October 1, 2006, at a cost of $96,000 The company estimated
that the machine will have a salvage value of $12,000 The machine is expected to be used for 10,000 working
hours during its 5 year life.

Instructions:
(a) Compute the straight-line depreciation for 2006.

Title - Title = Amount - Amount = Formula per year
Title Number

Amount per year X # / 12 = Formula for 2006

This cell is formatted to accept # / 12 value.

(b) Compute the units of activity depreciation for 2006 assuming the machine usage was. 1,700 hours.

Title - Title = Amount - Amount = Formula per hour
Title Number

Amount per hour X Quantity = Formula for 2006

(c) Compute the declining-balance using double the straight-line rate for 2006 and 2007.

Computation
Year: "Depreciable
Cost:" X "Depreciation
Rate:" = "Ann'l Deprec
Expense:" Mos / 12

0 Amount X Percentage = Formula X # / 12 = Formula
0 Amount X Percentage = Formula X # / 12 = Formula
This cell is formatted to accept # / 12 value.

Solution Preview

How do I convert this and what formula to capture Han Company purchased a new machine on October 1, 2006, at a cost of $96,000 The Company estimated
Han Company purchased a new machine on October 1, 2006, at a cost of $96,000 The Company estimated that the machine will have a salvage value of $12,000 The machine is expected to be used for 10,000 working hours during its 5 year life.

Instructions:
(a) Compute the straight-line depreciation for 2006.

Title - Title = Amount - ...

Solution Summary

This solution is comprised of a detailed explanation to calculate depreciation expense for Han Company.

$2.19