! Required information Exercise 8-9A Computing and recording straight-line versus double-declining-balance depreciation LO...
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! Required information Exercise 8-9A Computing and recording straight-line versus double-declining-balance depreciation LO 8- 2, 8-3 (The following information applies to the questions displayed below.) At the beginning of Year 1, Copland Drugstore purchased a new computer system for 300,000. It is expected to have a five-year life and a $40,000 salvage value. Exercise 8-9A Part a Required a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. Straight-line depreciation (2) Double-declining-balance depreciation. Double- Declining Year 1 Year 2 Year 3 Year 4 Year 5 On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $66,000. The equipment had a three-year estimated life with a $4,200 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,200. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Depreciation Expense Year 1 Year 2 Year 3 Year 4
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