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Torge Company bought a machine for $63,000 cash. The estimated useful life was five years and the estimated residual value was $6,000. Assume that the
Torge Company bought a machine for $63,000 cash. The estimated useful life was five years and the estimated residual value was $6,000. Assume that the estimated useful life in productive units is 153,000. Units actually produced were 40,800 in year 1and 45,900 in year 2 Required: 1. Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations.) Depreciation Expense for Book Value at the End of Year 1 Year 2 Year 1 Year 2 Method of Depreciation Straight-line Units-of-production Double-declining-balance 2-a. Which method would result in the lowest net income for year 1? Double-declining-balance Units-of-production Prev 7 of 7 1ll Next
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