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AirCo. has bought new equipment to produce shoes. The cost of the assets is $21,000; expected salvage value is $1,000; expected useful life is 5
AirCo. has bought new equipment to produce shoes. The cost of the assets is $21,000; expected salvage value is $1,000; expected useful life is 5 years. The expected number of products is 2,000 pairs of shoes (1 year 300; 2 year 600; 3 year 500; 4 year 400; 5 year 200). Which methods can the company apply to calculate depreciation.Briefly explain how they are applied and compute depreciation for each year using all of the possible methods. In your opinion, which of the methods is the most beneficial for AirCo.?
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