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The equipment of DEF Company has the following data: Cost Salvage value Useful life Date acquired 1,100,000 100,000 4 years 20,000 units 10,000 hours
The equipment of DEF Company has the following data: Cost Salvage value Useful life Date acquired 1,100,000 100,000 4 years 20,000 units 10,000 hours 01/01/x1 Required: Determine the depreciation expense in 20x1 under the following methods: 1. Sum-of-the-years' digits method. 2. Double declining balance method. 3. Units of input method (DEF used 3,000 working hours for the product it manufactured for the year 20x1). 4. Units of output method (DEF used 2,000 units of the product for the year 20x1).
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SumoftheYears Digits Method To calculate depreciation expense using the SumoftheYears Digits method we need to determine the total number of digits in ...Get Instant Access to Expert-Tailored Solutions
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