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Blue Spruce Corp. purchased a piece of equipment for $78,000. It estimated a 8-year life and $3,120 salvage value. At the end of year 4

Blue Spruce Corp. purchased a piece of equipment for $78,000. It estimated a 8-year life and $3,120 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $6,240. Compute the revised depreciation. Company uses straight-line depreciation method.

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