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Canyon Buff Enterprise (CDE) is purchasing equipment for $750,000. CDE is allowed to use an accelerated depreciation schedule of 40% in the first year, 30%
Canyon Buff Enterprise (CDE) is purchasing equipment for $750,000. CDE is allowed to use an accelerated depreciation schedule of 40% in the first year, 30% in the second year, 20% in the third year, and 10% in the fourth year. If the equipment is expected to have a salvage value of 0, what will the book value of the equipment be after the third year? (Hint: Book value is decreased by the amount the asset depreciates)
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