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Bramble Limited purchased a new computer system for $205,000. It is estimated that the computer will have an $15,950 residual value at the end of
Bramble Limited purchased a new computer system for $205,000. It is estimated that the computer will have an $15,950 residual value at the end of its 5-year useful service life. The double diminishing-balance method of depreciation will be used. Prepare a depreciation schedule that shows the annual depreciation expense on the computer for its 5-year life. (Hint: It might require an adjustment in the final year of depreciating an asset in order for the carrying amount to equal the residual value.) (Round answers to O decimal places, e.g. 5,275.) Year Carrying Amount Beginning Amount of year Depreciation Rate Annual Depreciation Expense Accumulated Depreciation 1 2 205000 40 % $ 40 % 40 % 40 % 40 % 82000
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