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Computation of Depreciation expense

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On January 2, 2010, Half, Inc., purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $144,000 estimated salvage value. Half expects to manufacture 1,800,000 units over the machine's life. During 2011, Half manufactured 300,000 units.
For each item, calculate depreciation expense for 2011 (the second year of ownership) for the machine just described under each method listed below:

1. Straight-line
2. Double-declining balance
3. Sum-of-the-years' digits
4. Units-of-production

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Solution helps in computing depreciation expense.

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On January 2, 2010, Half, Inc., purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $144,000 ...

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