Essay
Duluth Ranch,Inc.purchased a machine on January 1,2018.The cost of the machine was $34,000.Its estimated residual value was $10,000 at the end of an estimated 5-year life.The company expects to produce a total of 20,000 units.The company produced 2,500 units in 2018 and 3,200 units in 2019.
Required:
Part a.Calculate depreciation expense for 2018 and 2019 using the straight-line method.
Part b.Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.
Part c.Calculate depreciation expense for 2018 through 2022 using the double-declining balance method.
Correct Answer:
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Part a
Depreciation expense per year = (...View Answer
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Correct Answer:
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Depreciation expense per year = (...
View Answer
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