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B Company purchased a machine on January 1 for $4,000. The original estimated useful life was five years, and the estimated residual value was $1,000.
B Company purchased a machine on January 1 for $4,000. The original estimated useful life was five years, and the estimated residual value was $1,000. B Company uses straight-line depreciation. Two years after the purchase of the machine, B Company increases its estimated useful life by 3 years, but the residual value remains at $1,000. B Company should now record how much depreciation in year 3 (and beyond)? a. $400 c. $300 b. $360 d. $467
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