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An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected to last 4 years have a residual value
An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected to last 4 years have a residual value of $50 000. The company is planning to depreciate it on an accelerated basis of $300 000 in Year 1, $200 000 in Year 2, $100 000 in Year 3, and $50 000 in Year 4. a) What would be the PPE starting value in Year 3, accumulated depreciation at the end of Year 3, and PPE net carrying value at the end of Year 3? What depreciation expense would be charged against net income for Year 3?
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