On January 1, 2021, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the

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On January 1, 2021, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 220,000 units during its life.


Required:
Calculate depreciation for 2021 and 2022 using each of the following methods. Round all computations to the nearest dollar.
1. Straight line
2. Double-declining balance
3. Units of production (units produced in 2021, 30,000; units produced in 2022, 25,000)

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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