4.) In 1992, Silicon Chemical Company purchased a special purpose machine that had a fair price of $120,000. This new machine is expected to produce 100,000 units throughout its estimated useful life of 10 years. Up to the end of the third year it had produced 45,000 units and during the fourth year it produced 15,000 units. If the estimated market value is $12,000 at the end of 10 years, compute for the depreciation amount in the third year and the book value at the end of the fourth year by each of these methods:
4.) In 1992, Silicon Chemical Company purchased a special purpose machine that had a fair price of $120,000. This new machine is expected to produce 100,000 units throughout its estimated useful life of 10 years. Up to the end of the third year it had produced 45,000 units and during the fourth year it produced 15,000 units. If the estimated market value is $12,000 at the end of 10 years, compute for the depreciation amount in the third year and the book value at the end of the fourth year by each of these methods:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:4.) In 1992, Silicon Chemical Company purchased a special purpose machine
that had a fair price of $120,000. This new machine is expected to produce
100,000 units throughout its estimated useful life of 10 years. Up to the end
of the third year it had produced 45,000 units and during the fourth year it
produced 15,000 units. If the estimated market value is $12,000 at the end
of 10 years, compute for the depreciation amount in the third year and the
book value at the end of the fourth year by each of these methods:
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