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Business, 26.12.2019 22:31 kaitlyn1152

On january 1, 2020, monty company purchased the following two machines for use in its production process. machine a: the cash price of this machine was $49,500. related expenditures included: sales tax $3,400, shipping costs $100, insurance during shipping $110, installation and testing costs $90, and $100 of oil and lubricants to be used with the machinery during its first year of operations. monty estimates that the useful life of the machine is 5 years with a $4,050 salvage value remaining at the end of that time period. assume that the straight-line method of depreciation is used. machine b: the recorded cost of this machine was $180,000. monty estimates that the useful life of the machine is 4 years with a $10,050 salvage value remaining at the end of that time period.

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