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Blue Automotive purchased equipment on October 1, 2021, at a total cost of $174,000. The machine has an estimated useful life of 8 years or
Blue Automotive purchased equipment on October 1, 2021, at a total cost of $174,000. The machine has an estimated useful life of 8 years or 100,000 hours, and an estimated residual value of $35,000. During 2021 and 2022, the machinery was used 6,800 and 15,200 hours, respectively. Compute depreciation expense at December 31, 2021 and December 31, 2022, under the following depreciation methods:
2021 | 2022 | |||
Straight-line depreciation | $ | $ | ||
Units-of-production depreciation | $ | $ | ||
Double diminishing-balance depreciation | $ | $ |
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