On January 2, 2018, Wavepoint Systems, a cell phone manufacturer, installed a computerized machine in its factory

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On January 2, 2018, Wavepoint Systems, a cell phone manufacturer, installed a computerized machine in its factory at a cost of $169,200. The machine?s useful life was estimated at four years or a total of 181,500 units with a $24,000 trade-in value. Wavepoint?s year-end is December 31. Calculate depreciation for each year of the machine?s estimated useful life and the total depreciation for all 4 years under each of the following methods:

a. Straight-line

b. Double-declining-balance

c. Units-of-production, assuming actual units produced were:

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d. Comment on the total depreciation amounts under each method.

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Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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