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On August 3, Cinco Construction purchased specialpurpose equipment at a cost of $9,000,000. The useful life ofthe equipment was estimated to be eight years, with

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On August 3, Cinco Construction purchased specialpurpose equipment at a cost of $9,000,000. The useful life ofthe equipment was estimated to be eight years, with an estimated residual value of $80,000. 3. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (halfyear convention). b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent decliningbalance method (halfyear convention) with a switch to straightline when it will maximize depreciation expense. c. Which of these two depreciation methods (straight-line or double-declining-balance) results in the highest net income for financial reporting purposes during the first two years of the equipment's use? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). (Adjust year 9 depreciation, if necessary, so that the total depreciation expense equals depreciable value of the asset. Do not round intermediate calculations and round your final answers to the nearest whole number.) Straight-Lino (Half-Year Convention)

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