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On January 2, 2002, equipment with a cost of $440000 was purchased in exchange for a note. The equipment has an estimated salvage value of
On January 2, 2002, equipment with a cost of $440000 was purchased in exchange for a note. The equipment has an estimated salvage value of $43000 and an estimated life of 25000 hours. It is to be depreciated by the units-of-activity method. Use the following tabular analysis to determine the adjustment that would be made for depreciation for the first full year if the equipment was used 6250 hours.
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