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Mittal Companies bought a machine at the beginning of the year at a cost of $35,000. The estimated useful life was five years and the
Mittal Companies bought a machine at the beginning of the year at a cost of $35,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 16,500 units. Expected annual production was year 1, 3,300 units; year 2, 4,300 units; year 3,3,300 units; year 4, 3,300 units; and year 5, 2,300 units. Required: 1. Complete a depreciation schedule for the units-of-production method. 2. Prepare the journal entry to record Year 2 depreciation. Journal entry worksheet
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