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Bigfoot Java, a company that sells coffee, purchased equipment on June 1, 2015 for $444,000. It is estimated it will have a 8 year useful life, salvage value of $10,000. The equipment is expected to be able to produce 500,000 coffee drinks and last 11,100 hours. During 2020, Bigfoot Java uses the equipment for 800 hours and produced 38,000 coffee drinks.
Instructions
Problem 1: Compute the depreciation charge in 2020 under each of the following methods:
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