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Fleet Rentals purchased equipment with a cost of $200,000 at the beginning of 2014. The equipment has an estimated life of 10 years or 100,000
Fleet Rentals purchased equipment with a cost of $200,000 at the beginning of 2014. The equipment has an estimated life of 10 years or 100,000 units of product. The estimated residual value is $20,000. The actual units of product produced during 2014 and 2015 were 11,000 and 10,000, respectively.
Required: Compute the annual depreciation for the following methods for 2014 and 2015. Make sure you show your calculations.
1. Straight-line Depreciation
2. Double-Declining-balance method of depreciation
3. Units-of-production Depreciation
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