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At the beginning of 2015, your company buys a $36,000 piece of equipment that it expects to use for 4 years. The equipment has an
At the beginning of 2015, your company buys a $36,000 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 48,000 units in 2015, 53,000 units in 2016, 54,000 units in 2017, and 45,000 units in 2018. Required: a. Determine the depreciable cost. Depreciable Cost b. Calculate the depreciation expense per year under the straight-line method. Depreciation Expense per year Depreciation Accumulated Net Book Year Expense Depreciation Value Acquisition cost 2015 2016 2018
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