Question
Porto's Bakery installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life
Porto's Bakery installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $44,200. The machine's useful life is estimated at 10 years, or 392,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 33,200 units of product.
1. Determine the machines second-year depreciation and year end book value under the straight-line method.
2.Determine the machines second-year depreciation using the units-of-production method
3.Determine the machines second-year depreciation using the double-declining-balance method.
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