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Please solve the problems E11-2 Compute the annual depreciation expense each year for an asset with a cost of $1,200. salvage value of $200, and
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E11-2 Compute the annual depreciation expense each year for an asset with a cost of $1,200. salvage value of $200, and a useful life of four years under each of the following methods: a. Straight-line b. Sum-of-the-years-digits c. Double-declining balance E11-3 Refer to E11-2. Assume that the company expects the asset in question to produce 100,000 units over the four-year life. The expected output is as follows: Year 1: 40,000, Year 2:25,000, Year 3: 20,000, and Year 4: 15,000. Required: a. Compute the expected depreciation expense that would result under the units of production method. b. Assume that, instead of the expected output, the actual output was: Year 1: 50,000, Year 2: 40,000, Year 3: 30,000, and Year 4: 20,000. Compute the depreciation expense that would be recorded each year Step by Step Solution
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