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ABC Company purchased a piece of machinery for $120,000 on January 1, 2020 and has been depreciating the machine using the double-declining- balance method based

ABC Company purchased a piece of machinery for $120,000 on January 1, 2020 and has been depreciating the machine using the double-declining- balance method based on a five-year estimated useful life and $10,000 residual value. On January 1, 2022, ABC Company decided to switch to the straight-line method of depreciation. Due to technological innovations, the estimated useful life was reduced by one year from the original life and the residual value was reduced by 20%. Ignore income taxes.

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