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Please Help! Required information [The following information applies to the questions displayed below.] At the beginning of the year, Mitt Corporation bought machinery, shelving, and
Please Help!
Required information [The following information applies to the questions displayed below.] At the beginning of the year, Mitt Corporation bought machinery, shelving, and a forklift. The machinery initially cost $30,800 but had to be overhauled (at a cost of $2,240 ) before it could be installed (at a cost of $1,120 ) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2 . Repair costs were $480 in each year: The shelving cost $9,950 and was expected to last 5 years, with a residual value of $730. The forklift cost $16,650 and was expected to last six years, with [ residual value of $2,260. 2. Compute year 2 units-of-production depreciation expense for the machinery. (Do not round intermediate calculations.) Step by Step Solution
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