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On January 1, 2021, the Allegheny Corporation purchased equipment for $115.000. The estimated service life of the equipment is 10 years and the estimated
On January 1, 2021, the Allegheny Corporation purchased equipment for $115.000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 220,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Round all computations to the nearest dollar. 1. Straight line 2. Double-declining balance 3. Units of production (units produced in 2021, 30,000; units produced in 2022. 25.000) E 11-3 Depreciation methods; partial periods
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