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On May 31, 2014, Franklin Company purchased a machine for $205,000. The machine has useful life 5 years or 100,000 units with $5,000 salvage value.
On May 31, 2014, Franklin Company purchased a machine for $205,000. The machine has useful life 5 years or 100,000 units with $5,000 salvage value. Franklin uses 14,000 units in 2014 and 38,000 units in 2015. Compute depreciation expense for 2014 and 2015 and prepare the necessary JOURNAL ENTRIES at year end December 31 using the following methods:
1. Straight-line
2. Units of activity
3. Double-Declining Balance
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