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A machine was acquired on January 1, 2010, at a cost of $100,000. The machine was originally estimated to have a residual value of $10,000 and an estimated life of nine years. The machine is expected to produce a total of 200,000 components during its lie, distributed as:
Year Number of Components2010 15,0002011 25,000
2012 25,000
2013 25,000
2014 to 20116 25,000
2017 20,000
2018 15,000
Using the straight-line, unit of production, and double-diminishing balance methods, answer the following question
a. The 2011 amortization expense using the double-diminishing balance method
b. The 2013 amortization expense using the double-diminishing balance method
c . Which method results in the highest depreciation expense in the first two years?
d. Which method results in the highest depreciation expense over all nine years?
e. What would the adjusting entry look like to record the 2012 depreciation expense for double-diminishing balance method?
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