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9.2 Joseph Smith had just purchased a taxi license. He is seeking advice on how to account for his business. Joseph has purchased a car

9.2 Joseph Smith had just purchased a taxi license. He is seeking advice on how to account for his business. Joseph has purchased a car costing $20,000. He esitmates that the car will be used for four years after which he will sell it for $5,000. Calculate the depreciation charge to the income statement for each year using. a) The straight-line method b) The reducing balance method using a depreciation rate of 30%

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