Question: The RX Drug Company has just purchased a capsulation machine for $76,000. The plant engineer estimates the machine has a useful life of 5 years
The RX Drug Company has just purchased a capsulation machine for $76,000. The plant engineer estimates the machine has a useful life of 5 years and little or no salvage value. He will use zero salvage value in the computations. Compute the depreciation schedule for the machine using:
(a) Straight-line depreciation.
(b) Sum-of-years'-digits depreciation.
(c) Double declining balance depreciation. Assume any remaining depreciation is claimed in the last year.
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a Year SL SOYD DDB 1 15200 25333 25 76000 0 30400 2 15200 20267 25 76000 30400 18240 3 15200 15200 25 76000 48640 10944 4 15200 10133 25 76000 59584 6... View full answer
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