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Using Excell and explanations please Alladin Company purchased Machine #201 on May 1, 2017. The following information relating to Machine #201 was gathered at the
Using Excell and explanations please
Alladin Company purchased Machine #201 on May 1, 2017. The following information relating to Machine #201 was gathered at the end of May. Machine price Credit terms Freight-in costs Preparation and installation costs Labor costs during regular production operations $ 85,000 2/10, n/30 $ 800 3,800 10,500 10 years $ Expected time that the machine could be used Estimated salvage value at the end of 10 years Expected time that Alladin intends to use the machine Estimated sales price at the end of 8 years 8 years $1,500 The invoice for Machine #201 was paid May 5, 2017. Alladin uses the calendar year as the basis for the preparation of financial statements. 2018 (2) Sum-of-years-digits using the SYD function Year Annual Portion of Year 2017 2018 Total (3) Double-declining balance using the DDB function S - Suppose Kate Crow, the president of Alladin, tells you that because the company is a new organization, she expects it will be several years before production and sales reach optimum levels. She asks you to recommend a depreciation method that will allocate less of the company's depreciation expense to the carly years and more to later years of the assets' lives. What method would you recommend? Recommendation and comments Step by Step Solution
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