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36. Several years ago, the AaCo Company purchased a machine for $12,000. At that time, AaCo estimated that the machine would have a five year
36. Several years ago, the AaCo Company purchased a machine for $12,000. At that time, AaCo estimated that the machine would have a five year life and a salvage value of $2,000 Assume that AaCo determines after three years that the useful life in total) is nine years. and that the new salvage value is $1,000. Assume also that the accumulated depreciation attributable to the machine is $6,000 at the end of three years. Finally, assume that AaCo revised the estimated useful life and salvage value. Assuming that AaCo uses straight- line depreciation, what will be the depreciation expense for the fourth (of nine years) year? A. $2,000 B. 1,000 C. D. 570 E. None of the above 830
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