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Case (1): (1) Compute and fill in below table using the Straight-line method of Depreciation. (2) Compute and fill in below table using the Units-of-Production
Case (1):
(1) Compute and fill in below table using the Straight-line method of Depreciation.
(2) Compute and fill in below table using the Units-of-Production method of Depreciation.
Case (2):
Compute and fill in below table using the Double-Declining balance method of Depreciation.
TechSolutions Inc. acquired and implemented a new customer support software for its online retail platform in Dubai, with an initial investment of $90,000. The software is projected to retain a residual value of $15,000. It is anticipated that the software will handle a total of 750,000 customer service inquiries throughout its anticipated three-year operational life. The yearly breakdown of expected customer inquiries is as follows: 500,000 inquiries in the first year, 150,000 inquiries in the second year, and 100,000 inquiries in the third year. Required: Complete the depreciation schedule which shows Depreciation Expense, Accumulated Depreciation, Cost, and Book Value at each year for each of the following methods: 1. Straight-line. 2. Units-of-production. Case (2) CyberTech Industries invested in and integrated cutting-edge manufacturing equipment into its production facility for a specific product line, the machinery costs $100,000, and expected to retain a residual value of $7,000. The machine is anticipated to have an operational life of four years. Required: Complete the depreciation schedule which shows Depreciation Expense, Accumulated Depreciation, Cost, and Book Value at each year using the Double-declining-balance method. (1) Compute and fill in below table using the Straight-line method of Depreciation. (2) Compute and fill in below table using the Units-of-Production method of Depreciation. Compute and fill in below table using the Double-Declining balance method of DepreciationStep by Step Solution
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