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Jim company bought a machine for $36,000 with an estimated life of 5 years. The residual value of the machine is $6,000. Calculate (a) The
Jim company bought a machine for $36,000 with an estimated life of 5 years. The residual value of the machine is $6,000. Calculate (a) The annual depreciation and (b) the book value at the end of year 3. Assume straight-line depreciation. ANSWER: Annual depreciation- $6,000 Book value- $18,000 (How was is answer found?) Using the previous question, calculate the first 2 years depreciation, assuming the units-of-production method. This machine is expected to produce 120,000 units. In year 1, it produced 19,000 units, and in year 2, 38,000 units. I want to know how the answer to the first problem is found and what the assesed value and tax rate is. I know I have to multiply these two together to get the tax owed. Please help me find this
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