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ABC Corp purchased a franchise for $180,000 on January 1st, 2023. The franchise has a useful life of 10 years. Calculate the annual amortization expense

 

ABC Corp purchased a franchise for $180,000 on January 1st, 2023. The franchise has a useful life of 10 years. Calculate the annual amortization expense for the franchise using the sum-of-years' digits method. Also, determine the carrying amount of the franchise at the end of the fourth year.

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