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Question 1.) On July 1, 2020, Soprano Company purchased 10 computers with an invoice price of $50,000. Other costs incurred were sales tax $2,100, Freight

Question 1.) On July 1, 2020, Soprano Company purchased 10 computers with an invoice price of $50,000. Other costs incurred were sales tax $2,100, Freight $300, installation of $2,300, testing of $300, and prepaid insurance to cover the computers; $3,600. The computers are estimated to have a 5-year life and $5,000 salvage value.

Instructions:

  1. Find the cost of new computers.
  2. What is depreciation for 2020 and 2021 if the company uses the double-declining balance method?: 2020 Depreciation?:

    2021 Depreciation?:

Question 2.) A company purchased factory equipment for $700,000 on November 1, 2020. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be (Round to whole dollars if necessary)

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