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On January 1 Murphy Company acquired a machine with a four-year useful life. Murphy estimates the age value of the machine will be equal to

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On January 1 Murphy Company acquired a machine with a four-year useful life. Murphy estimates the age value of the machine will be equal to ten percent of the acquisition cost. The company is ng between using either the double-declining-balance method or the sum-of-the-years-digits d of depreciation. Comparing the depreciation expense for the first two years computed using metho these methods, the depreciation expense for the double-declining-balance method (compared to the sum-of-the-years'-digits method) will match which of the patterns shown below? First Second Year Lower a. b. Lower c. Higher d. Higher Lower Higher Lower Higher Legal fees incurred in successfully defending a patent suit should be capitalized when the patent has been Purchased from Internally Developed an Inventor a. Yes b. Yes No No No Yes Yes No C. . Vhich of th following uizes te sright lin depciaion method Group Composite Depreciation Yes No Yes No Depreciation . Yes Yes No No

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