On January 2,1998 , a new machine was acquired for ($ 900,000). The machine has an estimated

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On January 2,1998 , a new machine was acquired for \(\$ 900,000\). The machine has an estimated salvage value of \(\$ 100,000\) and an estimated useful life of 10 years. The machine is expected to produce a total of 500,000 units of product throughout its useful life. Compute depreciation for 1998 and 1999 using each of the following methods:

a. Straight line.

b. Units of production (assume 30,000 and 60,000 units were produced in 1998 and 1999, respectively).

c. Sum of the years' digits.

d. Double-declining balance.

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Financial Accounting A Business Perspective

ISBN: 9780072289985

7th Edition

Authors: Roger H. Hermanson, James Don Edwards

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