FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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25.
On January 1, 2021, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for four years or 8,000 machine-hours. It estimates that after four years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine-hours in 2021 and 2022, respectively.
Required:
Compute depreciation expense for 2021 and 2022 using the:
1. Straight-line method of depreciation.
2. Double declining balance method of depreciation.
3. Units-of-production method of depreciation.
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