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Computing Sum-of-the-Years'-Digits Depreciation The company acquired a machine on January 1 at an original cost of $115,000. The machine's estimated residual value is $20,000, and
Computing Sum-of-the-Years'-Digits Depreciation
The company acquired a machine on January 1 at an original cost of $115,000. The machine's estimated residual value is $20,000, and its estimated life is five years. Assume that the company uses sum-of-the-years'-digits depreciation.
Compute depreciation expense for each year of the machine's 5-year life. Round your answers to the nearest whole dollar.
Year 1 | $ |
Year 2 | $ |
Year 3 | $ |
Year 4 | $ |
Year 5 | $ |
Compute book value at the end of each year of the machine's 5-year life. Round your answers to the nearest whole dollar.
Year 1 | $ |
Year 2 | $ |
Year 3 | $ |
Year 4 | $ |
Year 5 | $ |
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