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A company is exploring the impact of the two methods of depreciation. On 1 January, it bought machinery for $15,000. The methods are (i) straight
A company is exploring the impact of the two methods of depreciation. On 1 January, it bought machinery for $15,000. The methods are (i) straight line where useful life is 4 years and the residual value is $2,000 and (ii) Reducing balance method -at the rate of 20% per annum. Show how the company's profit be affected if the straight-line method is used rather than the reducing method?
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