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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 $76,000. 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 $76,000. 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 670,000 units. Actual annual production was as follows:
Year | Units |
1 | 201,000 |
2 | 147,400 |
3 | 184,250 |
4 | 137,350 |
Complete a separate depreciation schedule for each of the alternative methods.
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
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