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A new machine costing $ 1 2 , 0 0 0 cash and estimated to have a $ 2 , 0 0 0 salvage value
A new machine costing $ cash and estimated to have a $ salvage value was purchased on January The machine is expected to produce units of product during its year useful life. Calculate depreciation expense in the first year under the following independent situations.
The company uses the unitsofproduction method and the machine produces units of product during its first year.
The company uses the doubledecliningbalance method.
The company uses the straightline method.
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Calculate depreciation expense in the first year if the company uses the unitsofproduction method and the machine produces units of product during its first year.
Select formula for the depreciation rate of Units of Production:
Galculate the first year depreciation expense:
tableDepreciation per unitUnits in first yearDepreciation in first year
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