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Question 2: Depreciation (10 marks) Garrison company purchased a new machine on September 1, 2019, at a cost of 250,000. The company estimated that the
Question 2: Depreciation (10 marks) Garrison company purchased a new machine on September 1, 2019, at a cost of 250,000. The company estimated that the machine will have a salvage value of $ 50,000. The machine is expected to be used for 50,000 working hours during its 5 years' life. Requirements: a. Straight line for 2019 b. Unit of activity for 2019, assuming machine use was 12,000 hours, in 4 months. c. Unit of activity for 2020, assuming machine use for 15,000 hours, in 12 months. d. Declining-balance using double the straight-line rate for 2019. e. Declining balance using double the straight-line rate for 2020
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