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Pina Colada Company purchased a new machine on October 1, 2022, at a cost of $114,900. The company estimated that the machine will have a
Pina Colada Company purchased a new machine on October 1, 2022, at a cost of $114,900. The company estimated that the machine will have a salvage value of $14,900. The machine is expected to be used for 10,000 working hours during its 5 -year life. (a) Compute the depreciation expense under straight-line method for 2022. Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,800 hours. (Round intermedlate calculations to 2 decimal places, eg. 10.12 and final answer to 0 decimal ploces, e.g. 2, 125.) Compute the depreciation expense under declining-balance using double the straight-line rate for 2022 and 2023 . (Round finol answers to 0 decimal places, eg, 2.125.)
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