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Kreacher Manufacturing purchased equipment on January 1, 2018, for $574,000. In 2018-2020, Kreacher depreciated the asset on a straight-line basis with an estimated useful life
Kreacher Manufacturing purchased equipment on January 1, 2018, for $574,000. In 2018-2020, Kreacher depreciated the asset on a straight-line basis with an estimated useful life of eight years and an $74,000 residual value. In 2021, Kreacher has started to change its business strategy and now believes that the equipment will be used for only another two years (five years total) but does not believe the residual value has changed. What depreciation would Kreacher record for the year 2021 on this equipment? Multiple Choice $156.250 $191625 $138,500 $100.000
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