A company purchased a new crane for $360,500 at the beginning of year 1. The crane has
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1.) Compute the annual depreciation and carrying value for the new crane for each of the 6 years (round to the nearest whole dollar) under each of the following methods: (a) straight-line (b) production and (c) double-declining balence.
2.) Prepare the adjusting entry that would be made each year to record the depreciation calculated under the straight-line method.
3.) Show the balence sheet presentation for the crane after the adjusting entry in year 2 using straight-line method.
4.) What conclusions can you draw from the patterns of yearly depreciation and carring value in 1?
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