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Quality Producers acquired factory equipment on 1 January 205, costing $158,000. Component parts are not significant and need not be recognized and depreciated separately. In
Quality Producers acquired factory equipment on 1 January 205, costing $158,000. Component parts are not significant and need not be recognized and depreciated separately. In view of pending technological developments, it is estimated that the machine will have a resale value upon disposal in four years of $40,000 and that disposal costs will be $3,000. The company has a fiscal year-end that ends on 31 December. Data relating to the equipment follow: Estimated service life: Actual operation data: Required: 1. Prepare a depreciation schedule for the asset, using; a. Straight-line depreciation. (Enter your answers as positive values. Round your answers to the nearest dollar.) b. Declining-balance depreciation, using a 30% rate. (Enter your answers as positive values. Round your answers to the nearest dollar.) c. Service-hours depreciation. (Round your depreciation expense per hour to 2 decimal places. Enter your answers as positive values. Round your answers to the nearest dollar.) 2. Express straight-line depreciation as a percentage of original cost. (Round your percentage answer to nearest whole number (i.e. 0.12 should be considered as 12%).)
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