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Thuy E9-33, E10-32 - E9-33 1 2008 a Straight-line 26,000...

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E9-33 1. 2008 a. Straight-line: 26,000 - 1,000 Depreciation expense = = $5,000/ year 5 b. Units-of-production : 26,000 – 1,000 Depreciation expense = x 9,000 = $2,045 110,000 2009 a. Straight-line: , 26,000 - 1,000 Depreciation expense = = $5,000/ year 5 b. Units-of-production : 26,000 – 1,000 Depreciation expense = x 24,000 = $5,455 110,000 2. Units-of-production depreciation method in which the cost of an asset is allocated to each period on the basis of the productive output or use of the asset during the period is more closely reflects the used-up service potential of the car. In this method, cost – salvage is divided by the asset’s useful life measured in miles (not in years as in straight-line method) to acquire the average depreciation expense per mile, and then multiply by the usage for the year. E10-32 Operating lease: 2009 Jan. 2 Lease computer ....................................................... 4,141 Lease liability ................................................................
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