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Computer equipment was acquired at the beginning of the year at a cost of $72,500 that has an estimated value of $1,900 and an estimated

Computer equipment was acquired at the beginning of the year at a cost of $72,500 that has an estimated value of $1,900 and an estimated useful life of 6 years.

Part 1. Determine the (a) annual straight-line depreciation and (b) the net book value for year 2.

Part 2. Determine (a) the depreciation rate (per unit depreciation) and (b) the depreciation expense for this year under Units of Production if the equipment will last for $14,000 hours and it was used this year for 1,200 hours.

Part 3. Determine (a) the depreciation expense for year 2 and the (b) Accumulated depreciation for year 2 using the double declining balance depreciation method.

Please show work. Thank you.

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