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Pemberton Corp. Accounting Question




Question;Pemberton Corp. purchased a machine costing $300,000 that had an estimate useful life of six years and residual value of $18,000. The machine is expected to produce 3,525,000 units during its useful life, as follow:YEAR UNITS1 930,0002 800,0003 580,0004 500,0005 415,0006 300,000 3,525,000a. What will be each year's depreciation charge if Pemberton uses the units-of production method?b. Will this give significantly different depreciation charges in each year than the sum-of-the-years' digits method?


Paper#45507 | Written in 18-Jul-2015

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