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On January 1,2023 , a machine was purchased for $95,000. The machine has an estimated salvage value of $7,280 and an estimated useful life of
On January 1,2023 , a machine was purchased for $95,000. The machine has an estimated salvage value of $7,280 and an estimated useful life of 5 years. The machine can operate for 102,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2023, 20,400 hours; 2024, 25,500 hours; 2025, 15,300 hours; 2026,30,600 hou and 2027,10,200 hours. (a) Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round rate per hour to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) Double-Declining-Balance Method Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset's life applying each of the following methods. (Round answers to 0 decimal places, e.g. 45,892.)
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