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Rottino Company purchased a new machine on October 1, 2017, at a cost of $118,000. The company estimated that the machine will have a salvage
Rottino Company purchased a new machine on October 1, 2017, at a cost of $118,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. Compute the depreciation expense under straight-line method for 2017. Compute the depreciation expense under units-of-activity for 2017, assuming machine usage was 1,610 hours. Compute the depreciation expense under declining-balance using double the straight-line rate for 2017 and 2018.
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