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Trinity Hall Society, a college fraternity, purchases a new heavy-duty washing machine on January 1, 2005. The machine which cost $1,000, had an estimated residual value of $100 and an estimated service life of four years (1,800 washing cycles). Calculate the following:

a. The machine's book value on December 31, 2007, assuming use of the straight-line depreciation method.

b. Depreciation expense for 2006, assuming use of the units-of-output depreciation method. Actual washing cycles on 2006 totaled 500.

c. Accumulated depreciation on December 31, 2007, assuming use of the double-declining balance depreciation method.

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  • Category:- Accounting Basics
  • Reference No.:- M9985970

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