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Incorrect Question 4 0/1 pts Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation
Incorrect Question 4 0/1 pts Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight- line method. You have the following information taken from the 12/31/x1 year-end financial statements for Company B: Income Statement Balance Sheet Assets: Depreciation Expense $10,000 Plant & Equipment, at cost $200,000 Less: Accumulated Depreciation (20,000) Net $180,000 You also determine that all of the PP&E assets of Company B were acquired at the same time, have the same useful life and the residual values are zero. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 20x1 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets. $14,580 $16,200 $18,000 $20,000
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