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Papas Fried Chicken bought equipment on January 2, 2013, for $39,000. The equipment was expected to remain in service for four years and to perform
Papas Fried Chicken bought equipment on January 2, 2013, for $39,000. The equipment was expected to remain in service for four years and to perform 11,000 fry jobs. At the end of the equipments useful life, Papas estimates that its residual value will be $6,000. The equipment performed 1,100 jobs the first year, 3,300 the second year, 4,400 the third, and 2,200 the fourth year.
Requirement: what is the depreciation and the book value per year for the equipment under the unit of production method and double-declining-balance method.
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