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A firm purchased a new machine costing $28,000 including sales tax. It also paid $2,000 for delivery and installation. The machine has a life of
A firm purchased a new machine costing $28,000 including sales tax. It also paid $2,000 for delivery and installation. The machine has a life of 6 years and an expected ending book value of $5,000. How is the depreciation computed using the straight-line method? Ignore the half- year convention. Click the answer you think is right. ($28,000 - $5,000)/6 ($28,000 + $2,000 + $5,000)/6 ($28,000 + $2,000 - $5,000)/6 $28,000/6
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