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Original value of a reactor is $40,000. The service life of the equipment is estimated to be 10 years. a) Determine the amount of the

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Original value of a reactor is $40,000. The service life of the equipment is estimated to be 10 years. a) Determine the amount of the annual depreciation based on straight-line depreciation. b) Determine the amount of the annual depreciation based on MARCS. c) If the salvage value of the equipment is $4,000, what is the book value of the equipment at the end of 5th year based on straight-line depreciation. DATA: Take the recovery period equal to the service life.

4. Original value of a reactor is $40,000. The service life of the equipment is estimated to be 10 years. a) Determine the amount of the annual depreciation based on straight-line depreciation. b) Determine the amount of the annual depreciation based on MARCS. c) If the salvage value of the equipment is $4,000, what is the book value of the equipment at the end of 5th year based on straight-line depreciation. DATA: - Take the recovery period equal to the service life

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