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On June 1, 2016 Morgan Manufacturing acquired a machine for $100,000 with an estimated useful life of 5 years and an estimated residual value of
On June 1, 2016 Morgan Manufacturing acquired a machine for $100,000 with an estimated useful life of 5 years and an estimated residual value of $10,000. The company uses the double declining method of depreciation and takes a full years depreciation in the year of acquisition and none in the year of disposition. If the machine were disposed of for $11,000 on May 1, 2018, the loss on disposal would be
$20,000.
$26,400.
$25,000.
$36,000.
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