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At the beginning of 2012, Precision Manufacturing purchased a new computerized drill press for $50,000. It is expected to have a five-year life and a $5,000 salvage value.
a. Compute the depreciation for each of the five years, assuming that the company uses(1)Straight-line depreciation.(2)Double-declining-balance depreciation.
b. Record the purchase of the drill press and the depreciation expense for the first year under the straight-line and double-declining-balance methods in a financial statement.
match terms and definitions. put your answer in the space
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