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G. A truck is purchased for $50,000 with an estimated salvage value of $2,000 and an years. Use the Double Declining Balance method and answer
G. A truck is purchased for $50,000 with an estimated salvage value of $2,000 and an years. Use the Double Declining Balance method and answer the following questions. expected life of 5 What is the straight-line rate? What depreciation rate (%) will be used in the deprecation table? What is the Book Value at the end of year 1? How much deprecation expense will be taken in year 2? How much deprecation has accumulated by the end of year 2? What is the Book Value at the end of year 2? What will be the gain or loss if the truck is sold at the end of year 2 for S15,000? $ Gain or loss H. Will a business capitalize or expense the following costs? (Enter "capitalize" Hint Capitalize costs that are incured for improvements, additions, ife extensions & frot-end costs to purchase a nsw asset and get i "expense" or reacy for its intended use the cost of replacing spark plugs in the truck engine the cost of tearing down an old building on land purchased for a building site the real estate broker's commission on land purchased the cost of purchasing a patent the cost of repairing leaky roof a the cost of solar panels on the building to improve energy efficiency the legal costs of successfully defending patent research and development costs
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