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25.38 Bombay Inc, bought new computers on January 1 for $18,000 to improve the quality of their animation. The computers have a useful life of
25.38 Bombay Inc, bought new computers on January 1 for $18,000 to improve the quality of their animation. The computers have a useful life of 8 years and no residual value after 8 years. But continuing technological developments will likely cause Bombay Inc. to replace the computers after 4 years, at which time they will be worth $2.000. If they use straight-line depreciation, the depreciation expense for the first year will be Select one: O a $2,000 O . $2,250 O c $4,000 O d. $4,500 Nol sure 38 The depreciation expense of an asset can change for all of the following reasons except for Select one: O a. a change in the estimated useful life. O b. a change in the asset's expected residual value. c. increases due to additions to the asset for major repairs and improvements. O d. regular repairs and maintenance costs that maintain the asset in good operating condition
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