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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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