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Exercise 11-2 Depreciation methods [L011-2] On January 1, 2018, the Allegheny Corporation purchased machinery for $172,000. The estimated service life of the machinery is 10
Exercise 11-2 Depreciation methods [L011-2] On January 1, 2018, the Allegheny Corporation purchased machinery for $172,000. The estimated service life of the machinery is 10 years and the estimated residual value is $18,000. The machine is expected to produce 350,000 units during its life. Required Calculate depreciation for 2018 and 2019 using each of the following methods. 1. Straight line 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance 5. Units of production (units produced in 2018, 44,000; units produced in 2019, 39,000)
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