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At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost $ 3 2 , 4 0 0

At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost $32,400 but had to be overhauled (at a cost of $2,560) before it could be installed (at a cost of $1,280) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $520 in each year.
The shelving cost $10,150 and was expected to last 5 years, with a residual value of $770. The forklift cost $18,450 and was expected to last six years, with a residual value of $2,340.
5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value).
\table[[,Year 1,Year 2],[Double-declining-balance,,]]
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