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Each question is independent from the others. Answer using the information above. 1. What is the book value after 3 years of depreciation, using straight
Each question is independent from the others. Answer using the information above.
1. What is the book value after 3 years of depreciation, using straight line?
2. What is the accumulated depreciation after 3 years, using double declining balance?
3. What is the depreciable value of the asset?
4. Assuming straight line depreciation, at the end of year 4, an improvement is made that costs 9,000 and adds 1 year of life to the equipment. Salvage value is not changed. Compute the year 5 depreciation expense.
Equipment Cost $134,000 Installation Labor $4,500 Freight $10,000 Repairs of Damage during installation $6,000 Insurance on Freight $1,500 Estimated Salvage Value $20,000 Useful Life 8 yearsStep by Step Solution
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