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Jupiter Company purchased an equipment on January 1, 2020 for $400,000 which had a residual value of $10,000 and useful life of 10 years. The
Jupiter Company purchased an equipment on January 1, 2020 for $400,000 which had a residual value of $10,000 and useful life of 10 years. The value of the equipment is measured using the revaluation model and the financial year is from January 1 to December 31.
If the equipment had a market value of $300,000 as of December 31, 2020. What would be the depreciation expense in 2021 for the equipment?
a.
$39,000
b.
$32,222
c.
$0
d.
$33,333
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