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Here is the problem: Dordine Company acquired equipment on March 1, 2020, at a cash cost of $1,000,000. Transportation charges amounted to $12,000, installation cost

Here is the problem:

Dordine Company acquired equipment on March 1, 2020, at a cash cost of $1,000,000. Transportation charges amounted to $12,000, installation cost was $40,000, testing costs were $30,000, and the payment of a fine for not getting the proper permit for moving the equipment was $1,000.

The equipment was estimated to have a useful life of 12 years and a salvage value of $60,000 at the end of its life. It was further estimated that the equipment would be used in the production of $364,000 units of product during its life. Duringthe 2020 year, 40,000 units of product were produced.

Required:Compute the depreciation to the nearest dollar for the year ended December 31, 2020, using the following methods:

  • Straight-line method
  • Units-of-production method
  • Sum-of-the-years-digits method
  • Double-declining balance method

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