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Becker Office Service purchased a new computer system on January 1, 2018, for $37,500. It is expected to have a five-year useful life and a
Becker Office Service purchased a new computer system on January 1, 2018, for $37,500. It is expected to have a five-year useful life and a $3.000 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life. Required a. Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation Salvage Value Useful Annual Cost Year Life Depreciation 1 2 3 4 5 b. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. (Enter all amounts as positive values. Do not round intermediate calculations. Round "SL rate" answers to 2 decimal places. Round your answers to the nearest dollar amount.) Accumulated Depreciation Annual Beginning (2* SL Rate) Depreciation Year Cost of Period 1 2 3 4 5 d. Assume that Becker Office Service sold the computer system at the end of the fourth year for $20,500. Compute the amount of gain or loss using each depreciation method. (Negative amounts should be indicated with a minus sign. Do not round Intermedlate calculations. Round the final answers to nearest dollar amount.) Amount Effect Straight-Line Double-Declining-Balance
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