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Question - On July 1, 2014, Delta Company purchased and placed in service a machine that cost $360,000. Delta estimated the service life to be 5 years or 25,000 units of output, with an estimated residual value of $6,000. During 2014, 2,600 units were produced.
Prepare the necessary December 31, 2014, adjusting journal entry to record depreciation assuming Delta uses: (a) The straight-line method of depreciation. (b) The units-of-production method of depreciation.
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