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On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful life of ten years and an estimated residual value
On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful life of ten years and an estimated residual value of $50,000. Use the double-declining-balance method to answer the following question(s). 35.
1. How much depreciation should Hills record on the asset in year 1?
a. $35,000
b. $30,600
c. $60,000
d. $70,000
2. How much depreciation should Hills record on the asset in year 2?
a. $16,000
b. $24,000
c. $56,000
d. $48,000
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