Year | Tons of Coal |
1 | 700,000 |
2 | 1,400,000 |
3 | 1,600,000 |
4 | 1,000,000 |
5 | 750,000 |
6 | 550,000 |
Required
Prepare the depreciation schedules for the machine assuming that Kurtis Koal used the following methods (each case is independent)
- a. Straight-line method
- b. Units-of-output method
- c. Double-declining balance method (Adjust the depreciation expense in the last year to the necessary amount to arrive at an ending book value equal to the scrap value.)
- d. Kurtis Koal sells the mining machine for $450,000 at the end of Year 3. What is the gain or loss on sale under each of the depreciation methods in parts (a)–(c)?
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