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Management Studies

On January 2, 2009, Jansing Corporation acquired a new machine with an estimated useful life of 5 years. The cost of the equipment was $40,000 with a residual value of $5,000.

a. Prepare a complete depreciation table under the three depreciation methods listed below.In each case, assume that a full year of depreciation was taken in 2009.

1. Straight-line.
2. 200 percent declining-balance.
3. 150 percent declining-balance.

b. Comment on significant differences or similarities that you observe among the patterns of depreciation expense recognized under each of these methods.

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M997018

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