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On March 1 , Year 5 , Bake Bliss Co . ( BBC ) purchased new equipment for $ 8 5 , 0 0 0
On March Year Bake Bliss CoBBC purchased new equipment for $ plus nonrefundable taxes of $ At that time, BBC determined that the equipment should be amortized over five years and had a residual value of $ BBC prorates the depreciation expense in years of acquisition and disposal.
On January Year a new model of the equipment was announced, and BBC plans to replace the equipment at the end of Year BBC has revised the amortization period of the existing equipment to the two remaining years. The residual value is expected to remain the same. BBC reports under ASPE.
Which one of the following amounts should be recorded in Year as the amortization expense?
Question options:
a
$
b
$
c
$
d
$
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