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On January 1, 2016, Grayzka Enterprises, Inc., paid $225,100 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company

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On January 1, 2016, Grayzka Enterprises, Inc., paid $225,100 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $300 transportation charges, $100 insurance for the equipment while in transit, $11,400 sales tax, and $3,100 for a special platform on which to place the equipment in the plant. Grayzka Enterprises, Inc., management estimates that the equipment will remain in service for five years and have a residual value of $20,000. The equipment will produce 50,000 units the first year, with annual production decreasing by 5,000 units during each of the next four years (i.e., 45,000 units in year 2; 40,000 units in year 3; and so on for a total of 200,000 units). In trying to decide which depreciation method to use, Grayzka Enterprises, Inc requested a depreciation schedule for each of the three depreciation methods (straight-line, units-of- production, and double-declining balance)

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