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Business, 31.03.2020 04:21 hibbo579

On January 1, year 8 Banks Co. purchased a machine for $500,000 which it intends to use manufacturing one specific product, with production slated to begin October 1, year 8. The machine has no expected salvage value at the end of its 8-year useful life. To best represent the machine’s pattern of use, Banks elects the units of production method for depreciating it. At the time of purchase, expected production was 10,000 units for year 8 and 90,000 units in later years. At December 31, year 8, actual production has been 7,000 units and Banks expects to produce 113,000 more units in later years. What amount of depreciation expense should Banks report for the machine on its income statement for the year ending December 31, year 8?

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On January 1, year 8 Banks Co. purchased a machine for $500,000 which it intends to use manufacturin...
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