Question
Cardine Company acquired and placed into use equipment on January 2,2011, at a cash cost of $935,000. Transportation charges amounted to $7,500, and installation and
Cardine Company acquired and placed into use equipment on January 2,2011, at a cash cost of $935,000. Transportation charges amounted to $7,500, and installation and testing costs totaled $55,00. The equipment was estimated to have a useful life of nine years and a salvage value of $37,500 at the end of its life. It was further estimated that the equipment would be used in the production of 1,920,000 units of product during its life. During 2011, 426,000 units of product were produced. Compute the depreciation to the nearest dollar for the year ended December 31,2011, using: a. straight-line method b. Units-of-production method c. Sum-of-the-years'-digits method. d. Double-declining-balance method (use fraction rather than percentage)
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