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At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle-making machine at a cost of $78,000. The estimated residual value
At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle-making machine at a cost of $78,000. The estimated residual value was $9,000. Assume that the estimated useful life was four years and the estimated productive life of the machine was 690,000 units. Actual annual production was as follows:
Year | Units |
1 | 207,000 |
2 | 151,800 |
3 | 189,750 |
4 | 141,450 |
Required:
1. Complete a separate depreciation schedule for each of the alternative methods.
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
Year | Depreciation Expense | Accumulated Depreciation | Net Book Value |
At acquisition | |||
1 | |||
2 | |||
3 | |||
4 |
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