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Fanning Corporation manufactures model airplanes. The company purchased for $125,000 automated production equipment that can make...

Fanning Corporation manufactures model airplanes. The company purchased for $125,000 automated production equipment that can make the model parts. The equipment has a $15,000 salvage value and a 10-year useful life.

Required

  1. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment.

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