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Sun Inc. purchased a new machine at the beginning of the year at a cost of $670,000. The estimated residual value was $18,500. Assume that
Sun Inc. purchased a new machine at the beginning of the year at a cost of $670,000. The estimated residual value was $18,500. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 455,000 units. Actual annual production was as follows:
Year | Units |
1 | 82,000 |
2 | 83,670 |
3 | 87,540 |
4 | 91,500 |
5 | 93,250 |
What is the net book value of the machine at the end of year 5 under 150% declining balance method depreciation?
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