Question
A firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage
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A firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8. Using the Double-Declining Balance (DDB) Method, what is the amount of resulting book value for year 4?
A. 36562.50
B. 3856.20
C. 11568.60
D. 20566.41
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Financial Accounting For Decision Makers
Authors: Peter Atrill
8th Edition
1292099046, 978-1292099040
