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A machine which cost $500,000 is acquired on October 1, 2020. Its estimated salvage value is $50,000 and its expected life is eight years. Instructions
A machine which cost $500,000 is acquired on October 1, 2020. Its estimated salvage value is $50,000 and its expected life is eight years.
Instructions
(1) Calculate depreciation expense for 2020 and 2021 by each of the following methods, showing the figures used.
(a) Double-declining balance
(b) Sum-of-the-years'-digits
(2) At the end of 2021, which method results in the larger accumulated depreciation amount?
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