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Beerbo acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. You, as the accounting
Beerbo acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. You, as the accounting manager, want to compare the effects of using two different depreciation method: the straight-line method and the double-declining balance method. An employee has prepared a table forecasting depreciation expense for each year (below). Year Depreciation Expense Straight- Double-Declining Line Balance 1 $4,500 $10,000 4,500 6,000 4,500 3,600 4,500 2,160 4,500 740 Total $22,500 $22,500 GAN The Totals represent the expected balance in ACCUMULATED DEPRECIATION at the end of the asset's life (i.e. at the end of the 5th year). You are not given any additional information. Given the limited information above, determine the asset's net book value (NBV) at the end of Year 1 under the straight-line method
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