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Depreciation for the machine Pharoah Ltd. purchased a new machine on April 4, 2014, at a cost of $168,000. The company estimated that the machine
Depreciation for the machine
Pharoah Ltd. purchased a new machine on April 4, 2014, at a cost of $168,000. The company estimated that the machine would have a residual value of $14,000. The machine is expected to be used for 11,000 working hours during its four-year life. Actual machine usage was 1,600 hours in 2014; 2,400 hours in 2015; 2,500 hours in 2016; 2,300 hours in 2017; and 2,200 hours in 2018. Pharoah has a December 31 year end. (2) Diminishing-balance using double the straight-line rate for 2014 through to 2018. 2014 expense $ 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $Step by Step Solution
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