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JBA Corporation began operations on January 1, 2020. During the first few months of operations, the company purchased a number of new items for ongoing
JBA Corporation began operations on January 1, 2020. During the first few months of operations, the company purchased a number of new items for ongoing use in the business. For each of the following items purchased, recommend the method of depreciation that most closely matches the pattern of economic benefits received from the asset. (a) Warehouse building for storing inventory. (b) Factory equipment that will operate based on demand for product; some months will be very busy, during other months the equipment will not operate. Activity method Declining-balance method Straight-line method Desks and chairs for the corporate office. (c ) ) (e) Air-conditioning equipment for the factory floor. The equipment will be in constant use, and as a result will be less efficient as time goes by. A truck for delivering completed product to customers
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