Q2) A. On October 1, 2013, the Alleghency Corporation purchased machinery for OR115,000. The estimated service life of machinery is 10 years and the estimated residual value is OR5,000. The machine is expected to produce 220,000 unite during its life.
Calculate depreciation expense for 2013 and 2014 using each of the following methods
Note: partial year depreciation is calculated based on number of months the asset is in service.