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This one is a little tricky as it begins on May 1, a partial year! Q2 Alladin Company purchased Machine #201 on May 1, 2018.
This one is a little tricky as it begins on May 1, a partial year!
Q2 Alladin Company purchased Machine #201 on May 1, 2018. The following information relating to Machine #201 was gathered at the end of May $425,000 $2,200 $8,000 $4,100 Price Freight-in costs Labor costs during regular production operations Alladin intends to use the machine only 10 years, however, after which it expects to be able to sell it for $7,200 The invoice for Machine #201 was paid May 1, 2018. Alladin uses the calendar year as the basis for the preparation of financial statements. Instructions: (1) Compute the depreciation expense for the years indicated using the straight-line method for 2018. (Round to the nearest dollar.) (2) Compute the depreciation expense for the years indicated using the sum-of-years'-digits method for 2019. (Round to the nearest dollar.)Step by Step Solution
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