Revision of estimated service life changes depreciation schedule. Slow Poke Delivery Company buys a new machine for
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Revision of estimated service life changes depreciation schedule. Slow Poke Delivery Company buys a new machine for $80,000 on January 1, Year 12. It estimates that the machine will last 10 years and have a salvage value of $8,000. Early in Year 14. it discovers that the machine will last only an additional six years, or eight years total (with no change in estimated salvage value). Present a table showing the depreciation charges for each year from Year 12 to Year 15, using each of the following methods (round calculations to the nearest dollar):
a. The straight-line method h. The sum-of-the-years'-digits method
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Related Book For
Financial Accounting Introduction To Concepts Methods And Uses
ISBN: 9780324222975
11th Edition
Authors: Clyde P. Stickney, Roman L. Weil
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