Pincer Company uses the declining balance depreciation method. It buys a machine for $105,200 that...
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Accounting
Pincer Company uses the declining balance depreciation method. It buys a machine for $105,200 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4.
Required 1: What depreciation expense will Pincer record in year 2? $
Required 2: What depreciation expense will Pincer record in year 3? $
Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $
Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $
Required 5: What is the net book value of the machine that Pincer Co reports at the end of year 2? $
Required 6: What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? $
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