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Norris Corporation purchased factory equipment that was installed and put into service January 2, 2019, at a total cost of $60,000. Salvage value was

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Norris Corporation purchased factory equipment that was installed and put into service January 2, 2019, at a total cost of $60,000. Salvage value was estimated at $8,000. The equipment's useful life is five years, and is depreciated using the straight-line method. Norris' fiscal year end is December 31. Compute the equipment's book value on January 1, 2022. Klein Co. purchased machinery on January 2, 2016, for $500,000. It estimates that the machine has useful life of 10 years, and a $40,000 salvage value. Klein's fiscal year-end is on December 31, and the company uses straight-line depreciation. At the beginning of 2022 Klein spent $96,000 to overhaul the machinery. After the overhaul, Klein estimates that the useful life would be extended 4 years (14 years total), and the salvage value would be $20,000. Compute the depreciation expense for 2022.

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