Fresh Juice Company installed a new juice press for $1,000,000. The company expects to use the press
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Fresh Juice Company installed a new juice press for $1,000,000. The company expects to use the press for 10 years, after which it can be sold for proceeds of $200,000. Management believes that the double-declining-balance method of depreciation is appropriate. After six years the company reassessed the depreciation method and determined that a 10% declining-balance rate would be more appropriate. The residual value estimate remained unchanged.
Required:
Compute the amount of depreciation for the juice press for all 10 years.
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