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Madhav Enterprises is the Melbourne's wholesale supplier of lawn mowing supplies and equipment. Assume Madhav Enterprises purchased for cash new loading equipment for the warehouse
Madhav Enterprises is the Melbourne's wholesale supplier of lawn mowing supplies and equipment. Assume Madhav Enterprises purchased for cash new loading equipment for the warehouse on January 1 of Year 1, at an invoice price of $94,500. It also paid $5,000 for freight on the equipment, $2,800 to prepare the equipment for use in the warehouse. The equipment was estimated to have a residual value of $4,800 and be used for three years or 30,000 hours. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Complete the following: A. Record the purchase of the equipment, freight, and preparation costs on January 1 of Year 1. (2 marks available) B. Create a depreciation schedule assuming Madhav Enterprises uses the straight-line method. (2 marks available) C. Create a depreciation schedule assuming Madhav Enterprises uses the double-declining-balance method. (2 marks available) D. Create a depreciation schedule assuming Madhav Enterprises uses the units-of-production method, with actual production of 9,500 hours in Year 1; 9,900 hours in Year 2; and 10,600 hours in Year 3. (2 marks available) E. On December 31 of Year 2 before the year-end adjustments, the equipment was sold for $30,000. Record the sale of the equipment assuming the company used the straight-line method. (4 marks available)
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