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Renewable Energies, Incorporated (REI) paid $100,000 to purchase a windmill. The windmill was expected to have a 10-year useful life and a $30,000 salvage value.
Renewable Energies, Incorporated (REI) paid $100,000 to purchase a windmill. The windmill was expected to have a 10-year useful life and a $30,000 salvage value. At the beginning of the fifth year of operation, REI changed the estimated useful life from 10 years to 14 years. Assuming the Company uses the straight-line method, the amount of accumulated depreciation on the Year 6 balance sheet would be Multiple Choice $36,400 $30,000 $32,200 $28,000
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