On July 1, 2020, Bright Co. purchased equipment that makes laptop keyboards for $925,000. The machine has
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Question:
On July 1, 2020, Bright Co. purchased equipment that makes laptop keyboards for $925,000. The machine has an estimated useful life of 8 years and is expected to have a residual value of $45,000. It is expected the machine will produce 100,000 keyboards. In 2020, the machine produced 5,000 keyboards and in 2021 the machine produced 12,000 keyboards. Bright Co. has a December 31 year-end date. Required: Compute the depreciation expense for both 2020 and 2021 using: 1. Straight-line method 2. Units of production method 3. Double diminishing balance method
Expert Answer:
1 Straightline method Cost of equipment 925000 Estimated useful life 8 years Residual value 45000 De... View the full answer
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