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need an explanation on how to do the double-declining method You are a financial analyst for Loch Motor Company and have been asked to determine
need an explanation on how to do the double-declining method
You are a financial analyst for Loch Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $116,000. The estimated useful life is 15 years, and the estimated residual value is $6,920. The machine has an estimated useful year 2. life in productive output of 202,000 units. Actual output was 22,000 in year 1 and 18,000 in Required 1. For years 1 and 2 only, prepare separate depreciation schedules assuming: (Do nof round intermediate calculations and round your final answers to the nearest dollar amount.) a. Straight-line method Depreciation Accumulated Net Book Value Year Expense Depreciation 116,000 108,728 101,456 At acquisition 7,272 S 7,272 7,272 14,544Step by Step Solution
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