On January 1, 2024, Morrow Incorporated purchased a spooler at a cost of $40,000. The...
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On January 1, 2024, Morrow Incorporated purchased a spooler at a cost of $40,000. The equipment is expected to last eight years and has a residual value of $4,000. During its eight-year life, the equipment is expected to produce 250,000 units of product. In 2024 and 2025, 42,000 and 76,000 units, respectively, were produced.
Required: Compute depreciation for 2024 and 2025 and the book value of the spooler on December 31, 2024, and December 31, 2025, assuming the double-declining-balance method is used.
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