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Clark Company purchased a new machine on January 1, 2024 for $255,000. On this date, the machine was estimated to have a life of 16
Clark Company purchased a new machine on January 1, 2024 for $255,000. On this date, the machine was estimated to have a life of 16 years and a residual value of $9,000. The company will depreciate the machine using the straight-line method. On January 1, 2030, Clark Company spent $53,000 to overhaul the machine. This capital expenditure caused Clark Company to change the life of the machine from 16 to 21 years with a residual value of $11,000 at the end of the 21 years. Calculate the book value of the machine at December 31, 2033
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