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A tractor for over-the-road hauling is purchased for $75,000.00. It is expected to be of use to the company for 6 years, after which it

A tractor for over-the-road hauling is purchased for $75,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,200.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life.

a. Use straight-line depreciation. Provide depreciation and book value for year 6.

b. Use declining-balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and book value for year 6. c. Use double declining balance depreciation. Provide depreciation and book value for year 6. d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6.

e. Use sum-of-years-digit depreciation. Provide depreciation and book value for year 6.

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