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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 $66,000. The estimated residual
At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle making machine at a cost of $66,000. The estimated residual value was $6,000. Assume that the estimated useful life was four years, and the estimated productive life of the machine was 600,000 units. Actual annual production was as follows:
At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle making machine at a cost of $66,000. The estimated residual value was $6,000. Assume that the estimated useful life was four years, and the estimated productive life of the machine was 600,000 units. Actual annual production was as follows: Year 1 2 3 4 Units 180,000 132,000 165,000 123,000 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 3 4 b. Units-of-production. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 3 4 C. Double-declining-balance. Depreciation Accumulated Expense Depreciation Net Book Value Year At acquisition 1 2 3 4Step by Step Solution
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