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DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2017. DuPage expects the machine to have a salvage value of
DuPage Company purchases a factory machine at a cost of $18,000 on January 1, 2017. DuPage expects the machine to have a salvage value of $2,000 at the end of its 4-year useful life. During its useful life, the machine is expected to be used for 160,000 hours. Actual annual hourly use was in 2017, 40,000; 2018, 60,000; 2019, 35,000; and 2020, 25,000. Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of activity, and (c) declining balance using double the straight-line rate
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