FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Placer Company purchased equipment on January 1, 20X1, for $80,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
1. Compute the amount of
2. If 16,000 units are produced in 20X1 and 24,000 units are produced in 20X2, what is the book value of the equipment at December 31, 20X2? The company uses the units-of-activity depreciation method.
3. If the company uses double-declining-balance method of depreciation, what is the balance of the
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