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Question 3) On January 1st, 2021, Company Corp purchased a piece of equipment for a cost of $150,000. The equipment had a cost of
Question 3) On January 1st, 2021, Company Corp purchased a piece of equipment for a cost of $150,000. The equipment had a cost of $20,000 to be transported and another $5,000 to have it installed. The equipment is expected to produce 500,000 units of the company's mysterious goods over its 15 years of useful life. They also expect to be able to sell the equipment for $30,000 at the end of its useful life. It is now January 1st, 2023. Please prepare entries for the last two years and provide the NBV of the equipment for Company Corp in each of the following situations. A) Company Corp uses straight line depreciation. B) Company Corp uses the Units of Production method and used 20,000 units in 2021 and 60,000 units in 2022.
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