Accounting 9

Accounting 9 - • Acc. Depreciation $ 18,750 • Using...

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Accounting 9 14:03 ON Jan 1, XYZ purchased a $79,000 machine. Its est. life is 4 years and/or  90,000 units. It has a salvage value of 4,000. Actual output for year 1 was 25,000  units, and for year 2 was 18,000 units. Using straight-line record the depreciation expense for year 2. SL= (cost –salvage)/ Est. Life (years)  = ($79,000 -$4,000)/ 4 = 18,750   Depreciation Expense  Depreciation Expense     $18,750
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Unformatted text preview: • Acc. Depreciation $ 18,750 • Using units-of-prod. Record the dep. Expense for year 2. • • • ($79,000 - $4,000)/ $90,000 x 18,000 • = $15,000 • Depreciation Expense $ 15,000 o Acc. Depreciation $ 15,000 • Using double-declining balance, record the dep. Expense for year 2. • • Year 1: DDB= ($79,000-0)/4 x2 = $39,500 • Year 2: DDB= ( 14:03 14:03...
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This note was uploaded on 12/26/2010 for the course MGQ 201 taught by Professor Orrange during the Fall '09 term at SUNY Buffalo.

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Accounting 9 - • Acc. Depreciation $ 18,750 • Using...

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