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Exercise #2 10 points The Remove-U-Tattoo Clinic purchased a surgical laser for $84,000 on January 1, 2014. The estimated salvage value is $4,000. The laser
Exercise #2 | 10 points | ||
| The Remove-U-Tattoo Clinic purchased a surgical laser for $84,000 on January 1, 2014. The estimated | ||
salvage value is $4,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. | |||
It was used for 900 hours in 2014; 2,100 hours in 2015; 2,400 hours in 2016. | |||
Instructions | |||
Showing all of your computations, compute the book value and the accumulated depreciation for | |||
December 31, 2015 under each of the following three methods: | |||
(1) Straight-line: | |||
2015 accumulated depreciation ____________________ 2015 book value ____________________ | |||
(2) Units-of-activity: | |||
2015 accumulated depreciation ____________________ 2015 book value ____________________ | |||
(3) Double-declining balance: | |||
2015 accumulated depreciation ____________________ 2015 book value ____________________ | |||
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