Question: Depreciation Problems 1. Zerbe Industries purchased a machine for $192,000 on Jan. 1, 1994. Zerbe expects to use the machine for 6 years, at which
Depreciation Problems 1. Zerbe Industries purchased a machine for $192,000 on Jan. 1, 1994. Zerbe expects to use the machine for 6 years, at which time its estimated salvage value will be $21,900. Production from the machine is budgeted at a total of 150,000 units, allocated to each year as follows: 1994, 25000 units. 1995, 30,000 units. 1996, 35000 units; 1997, 30,000. 1998, 20,000 units; 1999, 10.000 units. Required: 1. Calculate the amount of depreciation in each of the 6 years using each of the following methods: 1. The straight line method 2. The Units - of - output method 3. The Sum-of-the years digits 4.The double declining Balance
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