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A manufacturing company has decided to purchase equipment that has an initial cost of $267,000. The equipment will be used for 17 years, at
A manufacturing company has decided to purchase equipment that has an initial cost of $267,000. The equipment will be used for 17 years, at which point it will have a salvage value of $32,040 The company's Bccountant has decided to depreciate the equipment using a 175% declining balance method for determining book value of the equipment. a) What is the depreciation charge after the 14th year? b) The accountant changes his mind and has decided to use a straight line depreciation method for determining book values. With this change made, what is the deprecation charge in the 14th year? What is the book value after the 14th year when using the 175% declining balance method? d) What is the book value after the 14 year when using the straight line derpeciation method?
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