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Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,330,000. The estimated residual value was $70,000.
Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,330,000. The estimated residual value was $70,000. 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.
year | depreaction expense | accumulated deprecation | net book vaule |
at accuisition | |||
1 | |||
2 | |||
3 | |||
4 | |||
5 |
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
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