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Sawtooth Manufacturing LLC, manufactures stairway railings. They purchased a $15,000 lathe on January 2, 2015. The lathe was estimated to have a salvage value of
Sawtooth Manufacturing LLC, manufactures stairway railings. They purchased a $15,000 lathe on January 2, 2015. The lathe was estimated to have a salvage value of $1,000 at the end of its five year useful life. Management is trying to decide on a depreciation method to use for this new asset. |
Under which of the three methods( straight- line depreciation, double declining, or unit production) will Sawtooth Manufacturing have the highest net income for 2015 and 2016. Show calculations.
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