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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 $44,000. The estimated residual
At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle making machine at a cost of $44,000. The estimated residual value was $5,000. Assume that the estimated useful life was four years, and the estimated productive life of the machine was 390,000 units. Actual annual production was as follows: Year 1 2 3 4 Units 117.000 85.000 107250 79,950 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 b. Units-of-production. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 2 MP c. Double-declining-balance. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 4
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