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San Diego State University Operations And Supply Chain Management Assignment Help - Depreciation

Question - Company F purchased a machine that cost $50,000 and will be able to produce 500,000 units of product before wearing out. Expected production by year will be: year 1 – 80,000 units; year 2 – 100,000; year 3 – 100,000; year 4 – 110,000 and year 5 – 110,000. A salvage value was not assigned to the asset. Determine the annual depreciation expense using the units-of-production method and prepare the journal entry to record the expense.

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