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Trooty, Inc. purchased a machine on January 1, 2018. The cost of the machine was $34,000. Its estimated residual value was $10,000 at the
Trooty, Inc. purchased a machine on January 1, 2018. The cost of the machine was $34,000. Its estimated residual value was $10,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 2,500 units in 2018 and 3,200 units in 2019. Required: Part a) Show the depreciation schedule by calculating depreciation expense, accumulated depreciation and book value for 2018 and 2019 using the straight-line method. Part b) Show the depreciation schedule by calculating depreciation expense, accumulated depreciation and book value for 2018 and 2019 using the units-of-production method. Part c) Show the depreciation schedule by calculating depreciation expense, accumulated depreciation and book value for 2018 through 2022 using the double-declining balance method. Show all the tables in each part of the answer, including the formulas used. HTML Editor
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