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Torge Company bought a machine for $89,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the

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Torge Company bought a machine for $89,000 cash. The estimated useful life was five years and the estimated residual value was $8,000. Assume that the estimated useful life in productive units is 189,000. Units actually produced were 50,400 in year 1 and 56,700 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 2 Method of Depreciation Straight-line Units-of-production Double-declining-balance Year 1 Year 2 Year 1 2-a. Which method would result in the lowest net income for year 1? Units-of-production Double-declining-balance Straight-line 2-b. Which method would result in the lowest net income for year 2 Units-of-production Straight-line Double-declining-balance 3. Which method would result in the lowest fixed asset turnover ratio for year 1? Straight-line Units-of-production Double-declining-balance

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