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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated market value of $12,000 at the end of an estimated useful life of 14 years. Compute the annual depreciation amount and the BV at the end of each year using declining balance method with switchover to straight line method.
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