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5. Brandon Ltd purchased a new machine on 1 October 2015 at a cost of $228,000. The entity estimated that the machine has a residual
5. Brandon Ltd purchased a new machine on 1 October 2015 at a cost of $228,000. The entity estimated that the machine has a residual value of $28,000. The machine is expected to be used for 40,000 working hours during its 10-year life. Assume a 31 December year-end. What is the carrying value of the machine at the end of 2016 if the company uses the diminishing-balance method using a rate that is double the straight-line rate for 2015 and 2016? a. $216,000. b. $173,280. C. $203,000. d. $54,720. e. None of the above is correct
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