Essay
A machine costing $450,000 with a four-year life and an estimated $30,000 residual value is installed by Lux Company on January 1. The factory estimates the machine will produce 1,050,000 units of product during its life. It actually produces the following units for the first 2 years: Year 1, 260,000; Year 2, 275,000. Enter the depreciation amounts for years 1 and 2 in the table below for each depreciation method. Show calculation of amounts below the table.
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Straight-line: $450,000-30,000/4 = $105,...View Answer
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