Question
On January 1, 2022, Mozart Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last eight years and have a
On January 1, 2022, Mozart Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last eight years and have a residual value of $4,000. During its eight-year life, the equipment is expected to produce 250,000 units of product. In 2022 and 2023, 42,000 and 76,000 units respectively were produced. A) Compute depreciation expense for 2022 and 2023, assuming the sum-of-the-years'-digits method is used. B) Compute depreciation expense for 2022 and 2023, assuming the units-of-production is used.. 3) Compute depreciation expense for 2022 and 2023, assuming the double-declining balance method is used.
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