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The following information pertains to a machine purchased by Bakersfield Company on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated useful
The following information pertains to a machine purchased by Bakersfield Company on January 1, Year 1: Purchase price Delivery cost Installation charge Estimated useful life Estimated units the machine will produce Estimated salvage value $ 63,000 $ 2,000 $ 3,000 8 years 130,000 $ 3,000 The machine produced 14,400 units during Year 1 and 17,000 units during Year 2 Required Determine the depreciation expense Bakersfield would report for Year 1 and Year 2 using each of the following methods a. Straight-line. b. Double-declining-balance. c. Units-of-production.
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