(13) Use the information below to answer Questions 10 – 13. A business purchased a machine that had a total cost of $220,000 and a residual value of $20,000. The asset is expected to service the business for a period of 10 years or produce a total of 1,000,000 units. The machine was purchased January 1st of the current year and has been in service one complete year.  What is the depreciation expense in year one, if the double-declining balance method is used?

(12) Use the information below to answer Questions 10 – 13. A business purchased a machine that had a total cost of $220,000 and a residual value of $20,000. The asset is expected to service the business for a period of 10 years or produce a total of 1,000,000 units. The machine was purchased January 1st of the current year and has been in service one complete year.  Now assume the business uses the units-of-production method. If the asset produces 250,000 units in year one and 200,000 units in year two, what is book value at the end of year two?

(11) Use the information below to answer Questions 10 – 13. A business purchased a machine that had a total cost of $220,000 and a residual value of $20,000. The asset is expected to service the business for a period of 10 years or produce a total of 1,000,000 units. The machine was purchased January 1st of the current year and has been in service one complete year.   Using the straight-line method, what is the amount of depreciation expense in year two of the asset’s life?

(10) Use the information below to answer Questions 10 – 13. A business purchased a machine that had a total cost of $220,000 and a residual value of $20,000. The asset is expected to service the business for a period of 10 years or produce a total of 1,000,000 units. The machine was purchased January 1st of the current year and has been in service one complete year.  What is the depreciable cost of the asset?