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need to show working a) Coffee Hut purchased a coffee machine on the 1 January 2017 for $58,000. The expected useful life is 7 years,
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a) Coffee Hut purchased a coffee machine on the 1 January 2017 for $58,000. The expected useful life is 7 years, or 100,000 coffees. The residual value is expected to be $2,000. Sales (in cups) for coffee was as follows; 2017 2018 5,000 cups 6,500 cups Required: Calculate the annual depreciation expense for two (2) years (at the end of 2017 and 2018) using the following methods; 1. Straight Line method 2. Reducing balance method 3. Units of production method (1 mark) (2 marks) (2 mark)Step by Step Solution
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