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Question (3) Alvarado Company purchased a new machine for $400,000. It is estimated that the machine will have a $40,000 salvage value and 240,000 units
Question (3) Alvarado Company purchased a new machine for $400,000. It is estimated that the machine will have a $40,000 salvage value and 240,000 units at the end of its 5-year useful service life. Instructions: 1) Assuming that the company uses the straight-Line method, compute the amount of depreciation expense that will be recorded in the first year of machine's useful life. 2) Assuming that the company uses the double-declining balance method, Prepare a depreciation schedule which shows the annual depreciation expense on the machine for its 5-year life? 3) Assuming that the company uses the units-of-activity method, compute the amount of depreciation expense that will be recorded in the first year of machine's useful life if actual unitsproduced during the first year were 21,000 units
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