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Question - On January 1, 2018, Morrow Inc. purchased a spooler at a cost of $90,000. The equipment is expected to last three years and have a residual value of $5,000 During its eight-year life, the equipment is expected to produce 200,000 units of product, in 2018, 2019 and 2020, 150,000 and 60,000 and 10,000 units respectively were produced.
Required -
1) Compute depreciation for 2018. 2019 and 2020, assuming the double-declining balance method is used?
2) Compute depreciation for 2018, 2019 and 2020, assuming the units of production is used?
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