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Calculate the depreciation expense for each year of a new machine that your company purchased on January 1, 2018, at a cost of $ 175,000.
Calculate the depreciation expense for each year of a new machine that your company purchased on January 1, 2018, at a cost of $ 175,000. You have estimated that the machine will have a salvage value of $15,000. The machine is expected to be used for 25,000 working hours during its 5-year life. a) Prepare the depreciation schedule for each year of the useful life under declining balance method b) Compute the depreciation expense for 2018, 2019 and 2020 under units-of- activity method, assuming machine usage was 1800 hours in 2018 and 2500 hours and 1900 hours in 2019 and 2020 respectively
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