Calculate depreciation under alternative methods. (LO 2) Designer Jeans bought a new piece of equipment at the

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Calculate depreciation under alternative methods. (LO 2)

Designer Jeans bought a new piece of equipment at the beginning of the year at a cost of \(\$ 24,500\). The estimated useful life of the machine is 4 years, and its estimated productivity is 85,000 units. Its salvage value is estimated to be \(\$ 500\). Yearly production for Year 1 was 34,000 units; Year 2 was 25,500 units; Year 3 was 19,125 units; and Year 4 was 6,375 units. Complete a separate depreciation schedule for each of the three methods given for all 4 years. (Round your answers to the nearest dollar.)

a. Straight-line method

b. Activity method

c. Double-declining balance method

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Financial Accounting

ISBN: 9780131492011

1st Edition

Authors: Jane L. Reimers

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