Calculate depreciation expense using straight-line method

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Reference no: EM132485481

Point 1. Pemberton Company purchases a machine costing 375,000 and it has an estimated useful life of 7 years. The estimated residual value is 18,500.

Years Units

1 930,000

2 800,000

3 580,000

4 500,000

5 415,000

6 300,000

7 195,000

  3,720,000

Question a) What will be each year's depreciation charge if Pemberton uses the units of production method to calculate depreciation?

Question b) Calculate Depreciation expense using the straight-line method.

Question c) Calculate depreciation expense using the double-declining balance method

Question d) Why might a manager choose an accelerated deprecation method over straight-line?

Reference no: EM132485481

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