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17. (TCO E) Asphalt Inc. lays asphalt in parking lots and roadways. This year they were awarded the state roadway contract and decided to purchase
17.(TCO E) Asphalt Inc. lays asphalt in parking lots and roadways. This year they were awarded the state roadway contract and decided to purchase new equipment.
Asphalt purchased a new piece of equipment with a cost of $43,600 and a $6,000 salvage value, and placed it into service on April 1, Year 1. The equipment was installed at an additional cost of $3,400. The estimated life of the equipment is 8 years.
Required:
- Calculate depreciation expense for year 1 using the straight-line method.
- Calculate depreciation expense for year 2 using the double-declining balance method
- Calculate depreciation expense for year 1 using the straight-line method
Calculate depreciation expense for year 2 using the double-declining balance method
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