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1. Error Analysis and Depreciation, SL and SYD Kawasaki Company shows the following entries in its Equipment account for 2011. All amounts are based on historical cost.
(a) Prepare any correcting entries necessary.
(b) Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2011 under each of the methods listed below. Assume an estimated life of 10 years, with no salvage value. The machinery included in the January 1, 2011, balance was purchased in 2009.
(1) Straight-line.
(2)Sum-of-the-years'-digits.
Ledger of Custer Company has the following work in process account.
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