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On January 1, 20X1, the Kane Manufacturing Company purchased new equipment costing $200,000. The useful life of this equipment is estimated at ten years, and
On January 1, 20X1, the Kane Manufacturing Company purchased new equipment costing $200,000. The useful life of this equipment is estimated at ten years, and its salvage value is estimated to be $20,000. REQUIRED: Using the form provided here, calculate (1) the annual depreciation charge, (2) the accumulated depreciation, and (3) the carrying value of the equipment at the end of each year of the first five years of the asset's life, according to each of the following methods: 1. Straight-line method 2. Declining-balance method 3. Sum-of-the-years'-digits method 1. Using the declining-balance method of depreciation, the accumulated depreciation at the end of four years amounts to O A. $118,080. B. $72,000. O C. $97,600. D. $134,464
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