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Handwritten answers are not acceptable The answer must be in your own words no pic no excel sheet answer by table . DBC Corporation purchased

Handwritten answers are not acceptable

The answer must be in your own words

no pic

no excel sheet

answer by table

. DBC Corporation purchased a new machine on January 1st, 2010. The cost of this machine was $200,000. The company estimated that the machine would have a salvage value of $20,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 40,000 hours.

Calculate deprecation expenses, accumulated depreciation and book value of the machine for each of the year using:

  1. Straight Line Method
  2. Declining balance method (Based on twice the straight line rate)
  3. Activity Method if DBC uses the machine hours as follows:

Year

Hours used

2010

7,000

2011

8,500

2012

8,000

2013

9,000

2014

7,500

You can use following table to present your answer:

Year

Depreciation Expense

Accumulated Depreciation

Book Value

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