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A mine has bought a Front End Loader (FEL) piece of equipment for $120,000. This will be kept in use for five years and then

A mine has bought a Front End Loader (FEL) piece of equipment for $120,000. This will be kept in use for five years and then be disposed off for an amount of $20,000. The mine management accountants want you to prepare a comparison of the amounts charged as depreciation using Straight Line Method (SLM) and Reduced Balance Method (RBM). Explain what could be leant from the two methods of depreciation.

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