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Company A has equipment that costs $5,250,000 and has accumulated depreciation of $500,000, while Company B has equipment that costs $4,600,000 and has accumulated depreciation

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Company A has equipment that costs $5,250,000 and has accumulated depreciation of $500,000, while Company B has equipment that costs $4,600,000 and has accumulated depreciation of $4,400,000. Assuming both companies use straight-line depreciation and estimated useful lives of 40 years with $100,000 residual values, which of the following statements is true? Company A's equipment is newer than Company B's. Both companies have similarly aged equipment. Company B's equipment has a higher book value than Company A's. Both companies have the same'annual depreciation expense

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