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Please help with sum of years digits method for 2021 Metlock Company purchased Machine #201 on May 1, 2020. The following information relating to Machine
Please help with sum of years digits method for 2021
Metlock Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May. Price Credit terms Freight-in Preparation and installation costs Labor costs during regular production operations $102,000 2/10, n/30 $ 960 $ 4,560 $12,600 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Metlock intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $1,800. The invoice for Machine #201 was paid May 5, 2020. Metlock uses the calendar year as the basis for the preparation of financial statements. Your answer is partially correct. Try again. Compute the depreciation expense for the years indicated using the following methods. Depreciation Expense (1) Straight-line method for 2020 8640 (2) Sum-of-the-years'-digits method for 2021 (3) Double-declining-balance method for 2020 17580Step by Step Solution
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