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Banker Gear, Inc. is a manufacturer of high-end loafer dress shoes (deal sleds) that they market to Investment Bankers. Suppose you want to calculate the
Banker Gear, Inc. is a manufacturer of high-end loafer dress shoes (deal sleds) that they market to Investment Bankers. Suppose you want to calculate the Depreciation Expense for year 2 for Banker Gear if they used a Diminishing Balance Method of deprecation. You have the following information.
Equipment cost (Current Net Book Value): 100,000
Estimated Residual Value: 10,000
Useful Life: 10 years
Acceleration Factor: 1.5x
What is the year 2 depreciation expense?
Group of answer choices
a. 9,000
b. 85,000
c. 12,750
d. 15,000
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