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Torge Company bought a machine for $71,600 cash. The estimated useful life was five years, and the estimated residual value was $7,200. Assume that the
Torge Company bought a machine for $71,600 cash. The estimated useful life was five years, and the estimated residual value was $7,200. Assume that the estimated useful life in productive units is 161,000. Units actually produced were 42,200 in year 1 and 48,300 in year 2.
E9-6 Computing Depreciation under Alternative Methods [LO3] PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $22,150. The estimated useful life was five years, and the residual value was $3,450. Assume that the estimated productive life of the machine is 18,700 units. Expected annual production was: year 1, 5,900 units; year 2, 5,900 units; year 3, 3,450 units; year 4, 1,870 units; and year 5, 1,580 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.) a. Straight-line. Income Statement Depreciation Expense Balance Sheet Accumulated Book Value Depreciation Year Cost At acquisition 2 4 Step by Step Solution
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