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30. Audrey Inc. purchased new equipment for $42,000 on 1/1/2020. The equipment has a useful life of 10 years and an estimated salvage value of
30. Audrey Inc. purchased new equipment for $42,000 on 1/1/2020. The equipment has a useful life of 10 years and an estimated salvage value of $2,000.
a. Calculate the annual depreciation expense, accumulated depreciation, and net book value (on 12/31 of each year) using the straight-line method. Show your work.
b. If the equipment was sold at the end of the 10 years for $1,500, what would be the gain on sale of equipment?
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