(TCO H) On January 2,
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Description
(TCO H) On January 2, Year 1, Logan Co. purchased a
manufacturing machine for $864,000. The machine has an 8year estimated
life and a $144,000 estimated salvage value. Logan expects to
manufacture 1,800,000 units over the life of the machine. During Year 2,
Logan manufactured 300,000 units.
Instructions:
Calculate the Year 2 depreciation expense using (1) straight line depreciation and (2) double-declining balance depreciation.
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