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2. ABC Corporation purchased an equipment costing $27,000 that had an estimated useful life of 5 years and residual value of $2,000. (1)Compute each

2. ABC Corporation purchased an equipment costing $27,000 that had an estimated useful life of 5 years and residual value of $2,000. (1)Compute each year's depreciation based on (a) Straight line method (5 percent) (b)Double declining balance method (15 percent) (2) What is the book value of the equipment after two years under the Straight line method.(5 percent)

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