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A company purchased a chiller for its HVAC system for $100,000. It is expected to have a useful life of 6 years. The table below
A company purchased a chiller for its HVAC system for $100,000. It is expected to have a useful life of 6 years. The table below shows the annual book values and depreciation expenses. The expected market value at the end of the service life is $5,000. a) Complete the table below using 200%-declining-balance method. b) Determine when the company need to switch to a straight-line model to have a book value equal to the expected market value at the end of the useful life. c) What is the annual book value after switching? **Show calculations for at least one row in the table Depreciation Year Book Value Expense 0 100,000 1 66,667 33,333 2 44,444 22,222 3 29,630 14,815 4 19753 9,877 5 6
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