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Mary Kay Company purchases an oil tanker depot on January 1, 2017. Cost was $600,000. After a useful life of 10 years, Mary Kay must
Mary Kay Company purchases an oil tanker depot on January 1, 2017. Cost was $600,000. After a useful life of 10 years, Mary Kay must fully dismantle the depot, removing all tanks. Cost estimate is $50,000. Present Value is $28,000 (at 6%). Straight-line depreciation is used. Assume no salvage value. For 2017, Depreciation Expense and Interest Expense, respectively, are: Select one: a. $60,000, $5,000 b. $60,000, $3,000 c. $60,000, $1,680 o d. $62,800, $3,000 X e. $62,800, $1,680 The correct answer is: $62,800, $1,680
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