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A tractor for over the road hauling is purchased for $ 90,000. It is expected to be of use to the company for 6 years,
A tractor for over the road hauling is purchased for $ 90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $ 4,000. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life
a. use straight line depreciation
b. Use declining balance depreciation sing a rate that ensures the book value equals the salvage value
c.Use double declining balance depreciation
d.Use double declining balance switching to straight line depreciation
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