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Redeker Company purchased equipment on January 1, 2009, for $61.00o It is estimated that the equipment will have a $1,000 salvage value at the end
Redeker Company purchased equipment on January 1, 2009, for $61.00o It is estimated that the equipment will have a $1,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. The equipment is used in yr 1 20,000 units, yr 2 25,000 units, yr 3 15,000 units, yr 4 30,000 units and itn year 5 15,000 units Required: Prepare a schedule showing the cost basis, depreciation rate, depreciation expense and accumulated depreciation for each year under the straight line, activity method and double declining balance method of depreciation S/L ACC DEP BOOK DEP EXP RATE YR COST VALUE 2 3 4 5 Units of activity ACC DEP BOOK DEP EXP RATE YR COST VALUE 2 4 Double declining balance YR COST DEP EXP ACC DEP BOOK RATE VALUE 2 3 4 5 Sum of years ACC DEP BOOK DEP EXF RATE YR COST VALUE 2 4
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