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Company JKL purchased equipment for $500,000 cash. The equipment has a useful life of 5 years and a salvage value of $50,000. Calculate the annual
Company JKL purchased equipment for $500,000 cash. The equipment has a useful life of 5 years and a salvage value of $50,000. Calculate the annual depreciation expense using the double-declining balance method and prepare the journal entry to record the depreciation for the first year. Explain the double-declining balance method of depreciation and its significance in allocating the cost of long-term assets over their useful lives.
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