Regis University Operations And Supply Chain Management Assignment Help - Teague Company

Question - Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The
machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected
to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in 2012
and 110,000 units during 2013.


1) Determine the amount of depreciation expense to be recorded on the machine for the years 2012
and 2013 under each of the following methods:

a) Straight-line method
b) Units of production method
c) Double-declining balance method

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