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Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,615,000. The estimated residual value was $85,000.
Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,615,000. The estimated residual value was $85,000. Assume that the estimated useful life was five years and the estimated productive life of the machine was 300,000 units. Actual annual production was as follows:
Year Units
1. 70,000
2. 67,000
3. 50,000
4. 73,000
5. 40,000
Required: 1. Complete a separate depreciation schedule for each of the alternative methods.
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
Complete a depreciation schedule using the straight-line method. Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 3 4 5 Complete a depreciation schedule using the units-of-production method. (Use two decimal places for the per unit output factor.) Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2 3 4 5 Complete a depreciation schedule using the double-declining-balance method. (Do not round your intermediate calculations.) Year Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 1 2. 3 4 5Step by Step Solution
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