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A company purchased a piece of equipment costing $ 1 2 5 , 0 0 0 and is depreciating it assuming a 1 0 -
A company purchased a piece of equipment costing $ and is depreciating it assuming a
year life. The residual value was originally expected to be $ At the end of the fifth year, the
motor was replaced a major overhaul at a cost of $ The overhaul increased the efficiency
of the equipment. How much is depreciation expense in the sixth year assuming straightline
depreciation, no change in estimated useful life and no change in residual value?
None of the above.
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