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Asset A will have a useful life of 9 years and cost $5M; it will have installation costs of $750,000 and an estimated salvage or
Asset A will have a useful life of 9 years and cost $5M; it will have installation costs of $750,000 and an estimated salvage or residual value $500,000. Asset B will have a useful life of 3 years and cost $2.5M; it will have installation costs of $250,000 and a salvage or residual value of $160,000. Which asset will have the greater annual straight-line depreciation and by how much?
A. Asset A by $280,000
B. Asset B by $277,778
C. Asset A by $277,778
D. Asset B by $280,000
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