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On January 1, 2020, Mario and Luigi Plumbers purchased tools and equipment at a cost of $80,000. The equipment has an estimated residual value of
On January 1, 2020, Mario and Luigi Plumbers purchased tools and equipment at a cost of $80,000. The equipment has an estimated residual value of $5,000 and an estimated life of 10 years.
What amount will the company report as total depreciation expense over the 10-year life of the equipment using straight-line depreciation?
Group of answer choices
$7,500
$8,000
$80,000
$75,000
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