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A Company Purchased a Machine on January 1 of the Current

Question 254

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A company purchased a machine on January 1 of the current year for $750,000.Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours,with a salvage value of $75,000)using each of the below-mentioned methods.During the machine's 5-year life its hourly usage was: 3,000; 4,000; 5,000; 5,000; and 3,000 hours.
 Straight-line  Units-of-production  Double-declining balance  Year 1  Year 2  Year 3  Year 4  Year 5  Totals \begin{array} { | l | l | l | l | } \hline & \text { Straight-line } & \text { Units-of-production } & \text { Double-declining balance } \\\hline \text { Year 1 } & & & \\\hline \text { Year 2 } & & & \\\hline \text { Year 3 } & & & \\\hline \text { Year 4 } & & & \\\hline \text { Year 5 } & & & \\\hline \text { Totals } & & & \\\hline\end{array}

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