JLo Company purchased machinery for $120,000 on January 1, 2008. It is estimated that the machinery will

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JLo Company purchased machinery for $120,000 on January 1, 2008. It is estimated that the machinery will have a useful life of 20 years, scrap value of $15,000, production of 84,000 units, and working hours of 42,000. During 2008 the company uses the machinery for 14,300 hours, and the machinery produces 20,000 units. Compute depreciation under the straight-line, units-of-output, working-hours, sum-of-the-years’-digits, and declining-balance (use 10% as the annual rate) methods.


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Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

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