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On October 1, 2018, the Allegheny Corporation purchased machinery for $166,000. The estimated service life of the machinery is 10 years and the estimated residual
On October 1, 2018, the Allegheny Corporation purchased machinery for $166,000. The estimated service life of the machinery is 10 years and the estimated residual value is $1,000. The machine is expected to produce 330,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight line. 2. Sum-of-the-years-digits.
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