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Gerald Gumbo owns Cajun Chili Corporation. Gerald has asked you to estimate depreciation for the next two years, so he can decide which method
Gerald Gumbo owns Cajun Chili Corporation. Gerald has asked you to estimate depreciation for the next two years, so he can decide which method to use. The company purchased a new giant chili kettle on January 1, 2018 at a cost of $160,000. The company estimates that the kettle will have a salvage value of $40,000. The chili kettle is expected to produce 10,000 batches of chili during its 4-year estimated useful life, including 2,000 batches in 2018 and 3,000 batches in 2019. What is depreciation expense for 2018 using the double-declining-balance method?
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