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A machine was acquired on January 1, 2018, at a cost of $180,000. The machine was originally estimated to have a residual value of $60,000,
A machine was acquired on January 1, 2018, at a cost of $180,000. The machine was originally estimated to have a residual value of $60,000, an estimated life of 20 years and expected to produce 240,000 units over its useful life. The machine is produced a total of 15,000 units in 2018 and 25,000 in 2019. Year end is December 31. a. Compute depreciation expense for 2018 and 2019 using straight line, double diminishing and units of production. 6 marks b. Prepare journal entry to record depreciation for 2018. Use straight line amount computed. 2 marks C. Compute the balance in accumulated depreciation for 2019. Use amounts computed for units of production. 2 marks
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