Question
On January 1, a machine costing $460,000 with a 6-year life and an estimated $10,000 salvage value was purchased. It was also estimated that the
On January 1, a machine costing $460,000 with a 6-year life and an estimated $10,000 salvage value was purchased. It was also estimated that the machine would produce 550,000 units during its life. The actual units produced during its first year of operation were 120,000. Determine the amount of depreciation expense for the first year under each of the following assumptions: Prepare the necessary December 31 journal entry to record depreciation for the current year assuming the company uses: a. The straight-line method of depreciation b. The units-of-production method of depreciation c. The double-declining balance method of depreciation
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