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Parts d and e 1. On January 1,20X1, WebHelper Inc. purchased equipment for $150,000. The estimated service life of the equipment is 9 years and
Parts d and e
1. On January 1,20X1, WebHelper Inc. purchased equipment for $150,000. The estimated service life of the equipment is 9 years and the estimated residual value is $5,000. The equipment is expected to produce 290,000 units during its useful life. Calculate depreciation for 201,202 and 203 using each of the following methods assuming that WebHelper Inc. has a December 31 fiscal year end. Round all computations to the nearest dollar. a. Straight line. b. Sum-of-the-years' digits. c. Double declining balance. d. One hundred sixty percent declining balance. e. Units of production (units produced in 20X1,27,000; units produced in 202 and 20X3, 25,000 in each year) Step by Step Solution
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