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Chapter 9 Depreciation Tome Company purchased a machine for $75,000 cash. The estimated useful life is five years, and the estimated residual value is $5,000.
Chapter 9 Depreciation Tome Company purchased a machine for $75,000 cash. The estimated useful life is five years, and the estimated residual value is $5,000. Assume that the estimated useful life in productive units is 150,000 . Units actually produced were 40,000 in year 1 and 45,000 in year 2. Required: 1) Determine the appropriate amounts to complete the following schedule. Show computations. 2) Which method would result in the lowest net income for year 1? For year 2
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