A machine is acquired for ($ 8,900). It is expected to last 8 years and to be

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A machine is acquired for \(\$ 8,900\). It is expected to last 8 years and to be operated for 25.000 hours during that time. It is estimated that its salvage value will be \(\$ 1,700\) at the end of that time. Calculate the depreciation charge for each of the first 3 years using:

a. The straight-line (time) method.

b. The sum-of-the-years'-digits method.

c The declining-balance method using a 25 -percent rate (the maximum rate allowed).

d The units-of-production method. Operating times are as follows: first year. 3.500 hours: second year, 2,000 hours; third year, 5,000 hours.

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Financial Accounting An Introduction To Concepts Methods And Uses

ISBN: 9780030452963

2nd Edition

Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney

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