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On January 1, 2019, Toon Company purchased and placed into service a machine with a cost of $200,000. The Company estimated the machine's useful life
On January 1, 2019, Toon Company purchased and placed into service a machine with a cost of $200,000. The Company estimated the machine's useful life to be 5 years, or 100,000 units of output, with an estimated salvage value of $20,000. During the current year, 30,000 units were produced. The Company estimates it will produce 25,000 units in Year 2; 20,000 units in Year 3; 15,000 units in Year 4 ; and 10,000 units in Year 5.
2 on January 1, 2019, Toon Company purchased and placed into service a machine with a cost of $200,000. The Company estimated the machine's useful life to be 5 years, or 100,000 units of output, with an estimated salvage value of $20,000. During the current year, 30,000 units were produced. The Company estimates it will produce 25,000 units in Year 2; 20,000 units in Year 3; 15,000 units in Year 4; and 10,000 units in Year 5. Requirement (20 POINTS): Complete the depreciation tables for the machinery purchase using: A. The straight line method of depreciation for the years ending, December 31. B. The units of production method of depreciation for the years ending, December 31. C. The double declining balance method of depreciation for the years ending, December 31Step by Step Solution
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