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# On January 1, 2015, Co purchased a machine for \$30,000,000. The company expects to use the machine for 24,000 hours over the next 6 years.

1.     On January 1, 2015, Co purchased a machine for \$30,000,000. The company expects to use the machine for 24,000 hours over the next 6 years. The estimated sale value of the machine at the end of the sixth year is \$40,000. The company used the machine for 3,600 hours in 2015 and 5,000 hours in 2016.

What is the book value of the machine at the end of year 2016 if the company uses double-declining-balance method of depreciation?

Depreciation for 2016 using... View the full answer

• The question was asking for book value
• SkylineCTS
• May 04, 2018 at 11:04am
• Book Value for 2016 = \$30,000,000 - \$10,000,000 - \$6,666,667 = \$13,333,333
• May 04, 2018 at 11:06am
• Apologies, I missed mentioning the book value. Hope this helps now.
• May 04, 2018 at 11:06am
• Thank you very much
• SkylineCTS
• May 04, 2018 at 11:19am

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