Question: AbeCo borrowed 75 000 from the bank to purchase a machine

AbeCo borrowed $75,000 from the bank to purchase a machine that was estimated to produce 120,000 units of product; its expected residual value is $15,000. During 2014 and 2015, the machine produced 20,000 and 28,000 units, respectively. Calculate depreciation for 2014 and 2015 assuming the units-of-production method is used:
a. To the nearest whole month, and b. Using the half-year convention.


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  • CreatedJanuary 08, 2015
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