Determine the depreciable cost and the depreciation rate

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1. Equipment acquired at a cost of $180,000 has an estimated residual value of $10,000, has an estimated useful life of 40,000 hours, and was operated 3,600 hours during the year. Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-of-production depreciation for the year.

2. Equipment acquired at the beginning of the year at a cost of $125,000 has an estimated residual value of $5,000 and an estimated useful life of 10 years. Determine (a) the depreciable cost, (b) the double-declining balance rate, and (c) the double-declining-balance depreciation for the first year.

Reference no: EM13529604

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