RECOMMENDED!!Your client, Burley Designs, recently acquired a new machine
The info: Your client, Burley Designs, recently acquired a new machine to build bicycle wheels for the tandems, recumbents and trailers they build. Total machine cost after installation, calibrations and other related capitalized costs was $18,250. The machine has an expected life of 7 years with a residual value of $2000. The machine is capable of producing 20,000 wheels per year. Burley estimates that they will only ask the machine to produce as follows:Year Anticipated Product Schedule – Wheels1 13,5002 14,2503 15,0004 16,2005 17,0006 18,0007 19,100Can you explain how to calculate a depreciation schedule using the double declining method?
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