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Question - Figaro Production bought a machine at the beginning of the year at a cost of $29,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 13,500 units. Expected annual production was year 1, 2,700 units; year 2, 3,700 units; year 3, 2,700 units; year 4, 2,700 units; and year 5, 1,700 units.
Required -
1. Complete a depreciation schedule for the units-of-production method.
2. Prepare the journal entry to record Year 2 depreciation.
If the equipment is depreciated using the double diminishing balance method, how much depreciation expense is recorded for the first year
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