On January 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated service life ofthe machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000units during its life.Required:Calculate depreciation for 2018 and 2019 using each of the following methods. Round all computations to thenearest dollar.1. Straight line2. Sum-of-the-years’-digits3. Double-declining balance4. One hundred fifty percent declining balance5. Units of production (units produced in 2018, 30,000; units produced in 2019, 25,000)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of
the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000
units during its life.
Required:
Calculate depreciation for 2018 and 2019 using each of the following methods. Round all computations to the
nearest dollar.
1. Straight line
2. Sum-of-the-years’-digits
3. Double-declining balance
4. One hundred fifty percent declining balance
5. Units of production (units produced in 2018, 30,000; units produced in 2019, 25,000)

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