Crane Limited purchased equipment on February 1,2024, at a cost of $222,880. As the CFO...
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Accounting
Crane Limited purchased equipment on February at a cost of $ As the CFO of the company, you are considering the merits of using the diminishingbalance or unitsofproduction method of depreciation instead of the straightline method, which is currently being used for other equipment. The new equipment has an estimated residual value of $ and an estimated useful life of either five years or units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following numbers of units each year: units in ; units in ; units in ; units in ; units in ; and units in Crane has a December
year end.
straight line
double diminishing balance
units of production method
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