Question
Amazon.com, Inc. is analyzing its depreciation expenses for the fiscal year ending December 31, 20X9. The following data is provided: Initial Cost of Equipment:
Amazon.com, Inc. is analyzing its depreciation expenses for the fiscal year ending December
31, 20X9. The following data is provided:
● Initial Cost of Equipment: $15,000,000
● Salvage Value: $2,000,000
● Useful Life: 5 years
● Depreciation Expense for the Year: [Calculation 10]
● Accumulated Depreciation at the End of Year 3: [Calculation 11]
Calculate the following:
a) Annual Depreciation Expense b) Double Declining Balance Depreciation for Year 2 c) Book
Value of the Equipment at the End of Year 2 d) Gain or Loss on Disposal if Sold for $7,000,000
at the End of Year 4
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