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Specialized equipment costing $470,000 with a five-year life and an estimated $45,000 salvage value is installed in OTW Company's factory on January 1. The factory
Specialized equipment costing $470,000 with a five-year life and an estimated $45,000 salvage value is installed in OTW Company's factory on January 1. The factory manager estimates the machine will produce 85,000 units of product during its life. It actually produces the following units: year 1, 20,000; year 2, 15,000 year 3, 35,000, and year 4, 10 (equipment was broken and replacement part did not arrive until year-end); year 5, 22,000. The total number of units produced by the end of year 5 exceeds the original estimate - this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for machine under each depreciation method. Year Straight-Line Units-of-Production Double Declin Bal
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