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Bron Sodas Ltd. purchased bottling line equipment on January 1, 2020, for $438,400. It is expected to have a useful life of four years and
Bron Sodas Ltd. purchased bottling line equipment on January 1, 2020, for $438,400. It is expected to have a useful life of four years and a residual value of $36,000. The machine is expected to handle a total of 2,515,000 bottles during its life, distributed as follows: 722,000 in 2020, 746,000 in 2021, 612,000 in 2022, and 435,000 in 2023. The company has a December 31 year end.
(a)
Calculate the amount of depreciation to be charged each year, using each of the following methods:
i. | Straight-line |
Straight-line method depreciation | $Enter straight-line method depreciation in dollars per year. | per year |
ii. | Units-of-production (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 125.) |
Units-of-production method depreciation | $Enter units-of-production method depreciation in dollars per unit rounded to 0 decimal places. | per unit |
Year | |||
---|---|---|---|
2020 | $Enter a dollar amount. | ||
2021 | $Enter a dollar amount. | ||
2022 | $Enter a dollar amount. | ||
2023 | $Enter a dollar amount. |
iii. | Double-diminishing-balance |
Rate | Enter percentages. % |
Year | |||
---|---|---|---|
2020 | $Enter a dollar amount. | ||
2021 | $Enter a dollar amount. | ||
2022 | $Enter a dollar amount. | ||
2023 | $Enter a dollar amount. |
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