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EcoRenew Inc. owns the following assets: Asset Purchase Date Cost Useful Life Residual Value Solar Farms Jan 1, 2020 $700,000 20 years $60,000 Wind Farms

  1. EcoRenew Inc. owns the following assets:
AssetPurchase DateCostUseful LifeResidual Value
Solar FarmsJan 1, 2020$700,00020 years$60,000
Wind FarmsJuly 1, 2021$1,400,00025 years$120,000

Instructions: a) Calculate the depreciation expense for each asset for the fiscal year 2023. b) Determine the balance in the accumulated depreciation account for each asset on December 31, 2023. c) Compute the net amount to be reported in the 2023 financial statements for each asset as of December 31, 2023.

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