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Broadway Ltd. purchased equipment on January 1, 2014, for $900,000, estimating a 5-year useful life and no residual value. In 2014 and 2015, Broadway depreciated

Broadway Ltd. purchased equipment on January 1, 2014, for $900,000, estimating a 5-year useful life and no residual value. In 2014 and 2015, Broadway depreciated the asset using the straight-line method. In 2016, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2016 on this equipment? (Do not round your depreciation rate.)

Multiple Choice

  • $360,000.

  • $135,000.

  • $180,000.

  • $270,000.

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