Marigold Company acquired a plant asset at the beginning of Year 1. The asset has...
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Accounting
Marigold Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-the- Years'-Digits Double-Declining- Balance 1 $9,720 $16,200 $21,600 2 9,720 12,960 12,960 3 9,720 9,720 7,776 4 9,720 6,480 4,666 5 9,720 3,240 1,598 Total $48,600 $48,600 $48,600
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