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Coca-Cola has purchased new manufacturing equipment for $1,000,000 with a useful life of 10 years and a residual value of $100,000. Requirements: Calculate the annual
Coca-Cola has purchased new manufacturing equipment for $1,000,000 with a useful life of 10 years and a residual value of $100,000.
Requirements:
- Calculate the annual depreciation expense using the straight-line method.
- Determine the depreciation expense for the first year using the double-declining balance method.
- Compute the depreciation expense for the first year using the units of production method if the expected production is 100,000 units and actual production in the first year is 15,000 units.
- Analyze the impact of each depreciation method on the company's financial statements.
- Evaluate the total accumulated depreciation after three years using the straight-line method.
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