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Leprechaun Limited installed a computerized manufacturing machine in its factory at the beginning of the year at a cost of S43,500. The machine's useful life
Leprechaun Limited installed a computerized manufacturing machine in its factory at the beginning of the year at a cost of S43,500. The machine's useful life is estimated at 10 years or 385,000 units of product, with a S5,000 salvage value. During its first and second years, the machine produced 41,300 and 32,500 units, respectively. REQUIRED: 1) Determine the machine's second-year depreciation expense under the following methods: (a) Straight-line (b) Double-declining balance (c) Units-of-production 2) Determine if the following is a true or false statement and explain your answer: "Over the estimated useful life of the machine described above, the company will record greater depreciation expense using the straight-line method of depreciation than if the double-declining balance method of depreciation was chosen
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