FINANCIAL ACCOUNTING
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Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods
A machine is purchased January 1 at a cost of $70,800. It is expected to serve for eight years and have a salvage value of $2,800.
Required:
1. Prepare a schedule showing
a. Straight-line
b. Double-declining-balance (round to two decimal places)
c. Sum-of-the-years'-digits (round to two decimal places)
2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asset’s life.
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