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Here is the information for a set of small tools that will be depreciated over three years: a. What is the annual depreciation expense when
Here is the information for a set of small tools that will be depreciated over three years:
a. What is the annual depreciation expense when the straight-line depreciation method is used?
b. What is the depreciation expense in Year 1 when the units of output depreciation method is used?
c.What is the depreciation expense in Year 1 when the double declining balance depreciation method is used?
\begin{tabular}{lr} cost & $270,000 \\ salvage & $30,000 \\ life & 3 years \\ & \\ Yr. 1 output & 15,000 units \\ Yr. 2 output & 20,000 units \\ Yr. 3 output & 5,000 units \\ total output & 40,000 units \end{tabular}Step by Step Solution
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