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On January 1, 20X1, WebHelper Inc. purchased equipment for $150,000. The estimated service life of the equipment is 9 years and the estimated residual value
On January 1, 20X1, WebHelper Inc. purchased equipment for $150,000. The estimated service life of the equipment is 9 years and the estimated residual value is $5,000. The equipment is expected to produce 290,000 units during its useful life. Calculate depreciation for 20X3 assuming that WebHelper Inc. has a December 31 fiscal year end and it changed its depreciation method during 20X3 as follows. Round all computations to the nearest dollar. a. From straight line to sum-of-the-years' digits. b. From straight line to double declining balance. c. From double declining balance to units of production (25,000 units were produced in 2019; asset is expected to produce 250,000 units during its remaining useful life). d. From double declining to straight line.
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