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Genco Manufacturing purchased a piece of equipment on July 26th, 2016, at a cost of $72,000....

Genco Manufacturing purchased a piece of equipment on July 26th, 2016, at a cost of $72,000. The estimated residual value is $5,400 with a useful life of 5 years. Assume a production life of 60,000 units. Compute the depreciation for years 2016 and 2017 using the two depreciation methods below;

  1. Straight Line Method

  1. Units-of-production (in 2016, there was 5,000 units produced, and in 2017, there were 18,000 units produced).

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