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need help. its accounting Equipment acquired on October 1, 2017 at a cost of $540,000 has an estimated useful life of 10 years. The residual
need help. its accounting
Equipment acquired on October 1, 2017 at a cost of $540,000 has an estimated useful life of 10 years. The residual value is estimated to be $55,000 at the end of the equipment's useful life. The company has a December 31 year end. On January 1, 2019 the owner revises the total ostimated useful life to 8 years with a revised residual of 50,000 (20 Marks). Instructions Calculate the depreciation expense for December 31, 2017 and 2019 using: a) the straight-line method Depreciable Cost Carrying Depreciation Rate Accumulated Depreciation Annual Depreciation Year Equipment acquired on October 1, 2017 at a cost of $540,000 has an estimated useful life of 10 years. The residual value is estimated to be $55,000 at the end of the equipment's useful life. The company has a December 31 year end. What is the carrying amount for the year ending December 2019. Use the Diminishing-balance method: Depreciable Cost Carrying Depreciation Rate Annual Depreciation Accumulated Depreciation Year Note: Pro-rate the first year for both methods as the equipment was acquired in October and not January Step by Step Solution
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