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Noncurrent Assets Problem 6.23 LO 3 Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost
Noncurrent Assets Problem 6.23 LO 3 Depreciation calculation methods-partial year Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $132,000. The machine has an esti- mated life of five years and an estimated salvage value of $18,000. Required: a. Calculate the depreciation expense for each year of the asset's life using: 1. Straight-line depreciation. 2. Double-declining-balance depreciation. b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method
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