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29 March, 07:57

On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eight years and the total units of output to be 200,000. The estimated residual value is $8,000. Using the straight-line method, how much is: (Enter only whole dollar values.)

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  1. 29 March, 08:32
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    The answer is $10,800

    Explanation:

    Straight line method of depreciation is:

    Cost - residual value/number of useful life

    Cost - $62,000

    Residual value - $8,000

    Number of years - 5years

    =62,000 - 8,000/5

    =57,000/5

    $10,800.

    Therefore, $10,800 will be charged every year.
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