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Question 3 (10 marks) A machine that costs $105,000, with a four-year life and an estimated $10,000 salvage (residual) value, was installed in the
Question 3 (10 marks) A machine that costs $105,000, with a four-year life and an estimated $10,000 salvage (residual) value, was installed in the Gray Ghost Company factory on January 1, 2017. The factory manager estimated that the machine would produce 237,500 units of product during its life. It actually produced the following units: 2017: 60,700; 2018: 61,200; 2019: 59,800; and in 2020: 55,800. Required: Calculate the amounts that should be charged to depreciation over the machine's four-year life on each of the bases indicted in the form below: DEPRECIATION EXPENSE Year 2017 Straight line Units of production Double Decling Bal. 2018 2019 2020 Total
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