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Raffaello Inc. purchases a delivery car for $30000. The car has a salvage value of $2,000. It is expected to have a 8 year life
Raffaello Inc. purchases a delivery car for $30000. The car has a salvage value of $2,000. It is expected to have a 8 year life or to be driven for 200,000 kilometers. Calculate the annual depreciation expense if a) Raffaello uses the units-of-production depreciation method, and in year one it expects to use the car for 40,000 kilometers. b) Raffaello uses the straight-line depreciation method. c) Raffaello uses Double-Declining-Balance Depreciation.
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