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To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1 of
To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are
used for equipment purchased on January of the current year.
Required
Compute annual depreciation using each of the following methods.
a Straightline depreciation: Compute the depreciation rate and amount for each year.
Note: Enter the rate in decimal form such as and not as a percentage.
b Unitsofproduction method using service hours as a measure of input: Compute the depreciation rate and amount
of depreciation expense for the first year assuming service hours of actual operation.
d Sumoftheyears'digits method: Compute the depreciation amount for each year.
e Doubledecliningbalance method: Compute the depreciation amount for each year.
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