The company acquired a machine on January 1 at an original cost of $60,000. The machines estimated
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The company acquired a machine on January 1 at an original cost of $60,000. The machine’s estimated residual value is $10,000, and its estimated life is 10,000 service hours. The actual usage of the machine was as follows: Year 1, 2,000 hours; Year 2, 5,000 hours; Year 3, 2,000 hours; Year 4, 1,000 hours. Compute
(1) Depreciation expense for each year of the machine’s life and
(2) Book value at the end of each year of the machine’s life.
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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