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Cinder Co. purchased a machine on August 6, 2021, for $650,000. The machine's life was estimated at 10 years with a residual value of
Cinder Co. purchased a machine on August 6, 2021, for $650,000. The machine's life was estimated at 10 years with a residual value of $120,000. Cinder Co. uses the straight-line method for depreciation. Cinder Co. has a calendar year-end. REQUIRED: 1. Calculate the annual depreciation expense for 2021 if the company uses the nearest whole month method. 2. Calculate the annual depreciation expense for 2021 if the company uses the half year convention method. 3. Calculate the book value of the machine at the end of its useful life Journal entries are NOT required.
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