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Homework Help - Straight Line Depreciation Method On August 3, Cinco Construction purchased special-purpose equipment at a cost of $6,125,400. The useful life of the
Homework Help - Straight Line Depreciation Method
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $6,125,400. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $54,720.
a.What is the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention).
b.What is the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention) with a switch to straight-line when it will maximize depreciation expense.(Adjust year 9 depreciation, if necessary, so that the total depreciation expense equals depreciable value of the asset. Do not round intermediate calculations and round your final answers to the nearest whole number.)
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