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Miguel Rodriguez of MARIO S.A., an Uruguayan corporation, is computing the depreciation 22. expense of a piece of manufacturing equipment for the fiscal year ended
Miguel Rodriguez of MARIO S.A., an Uruguayan corporation, is computing the depreciation 22. expense of a piece of manufacturing equipment for the fiscal year ended 31 December 2009. The equipment was acquired on 1 January 2009. Rodriguez gathers the following information (currency in Uruguayan pesos, UYP): Cost of the equipment Estimated residual value Expected useful life Total productive capacity Production in FY 2009 Expected production for the next 7 years95,000 units each year If MARIO uses the straight-line method, the amount of depreciation expense on MARIO's income statement related to the manufacturing equipment is UYP 1,200,000 UYP 200,000 8 years 800,000 units 135,000 units
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