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PLEASE SHOW STEP BY STEP THANK YOU F Corporation purchased equipment for $450,000. Residual value at the end of the estimated 6 years or 150,000

PLEASE SHOW STEP BY STEP THANK YOU

F Corporation purchased equipment for $450,000. Residual value at the end of the estimated 6 years or 150,000 hours service life is expected to be $60,000.

Using Straight-line depreciation, determine:

  1. Book value at the end of year 3 $_____

Using 180% declining balance depreciation, determine:

  1. Depreciation expense for year 2 $_____
  2. Depreciation expense for year 3 $_____

Year

Hours used

1

25,000

2

24,900

3

25,100

4

25,400

5

25,100

6

24,500

Using Activity based depreciation, determine:

  1. Depreciation expense for year 3 $____
  2. Book value at the end of year 3 $____

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