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Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in 2012 and 110,000 units during 2013.
Required:
1) Determine the amount of depreciation expense to be recorded on the machine for the years 2012 and 2013.
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The comparative balance sheet of Westmont Industries at December 31, 2007, reported the following, Create the statement of cash flows of Westmont Industries for the year ended 31, 2007,
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