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[10] XYZ, Inc. purchased equipment Jan. 1, 2012. The cost was $500,000. Salvage value was $50,000 and the useful life was 5 years. The company
[10] XYZ, Inc. purchased equipment Jan. 1, 2012. The cost was $500,000. Salvage value was | |||||||
$50,000 and the useful life was 5 years. The company decided to depreciate the equipment using the | |||||||
straight line method. After three years of depreciating the equipment and three years of maintaining | |||||||
the equipment very well, the company realized that the original estimates were too aggressive. The | |||||||
company estimated that the equipment should last another five years (eight years in total) and salvage | |||||||
value will most likely be $60,000 at the end of 2019. Please show a chart that provides depreciation | |||||||
expense for each year, and accumulated depreciation at the end of each year. Show any other item | |||||||
that will help you with this analysis. |
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