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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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