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Please show how to calculate depreciation expense? Exercise 8-8A (Algo) Effect of double-declining-balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by
Please show how to calculate depreciation expense?
Exercise 8-8A (Algo) Effect of double-declining-balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by acquiring $87,600 cash from the issue of common stock. On January 1 , Year 1 , the company purchased equipment that cost $87,600 cash, had an expected useful life of six years, and had an estimated salvage value of $17,520. Golden Manufacturing earned $91,110 and $66,800 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required Prepare income statements, balance sheets, and statements of cash flows for Year 1 and Year 2. Use a vertical statements format. (Hint Record the events in T-accounts prior to preparing the statements.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Amounts to be deducted and net loss should be indicated with a minus sign.)Step by Step Solution
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