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On January 1, a machine costing $260,000 with a 4-year life and an estimated $5,000 salvage value was purchased. It was also estimated that the machine would produce 500,000 units during its life. The actual units produced during its first year of operation were 110,000. Determine the amount of depreciation expense for the first year under each of the following assumptions:
1. The company uses the straight-line method of depreciation.2. The company uses the units-of-production method of depreciation.3. The company uses the double-declining-balance method of depreciation.
Financial Statement Analysis and Preparation
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