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Sheffield Co. purchased machinery on January 2, 2020 for $870000. The straight-line method is used, and useful life is estimated to be 10 years, with
Sheffield Co. purchased machinery on January 2, 2020 for $870000. The straight-line method is used, and useful life is estimated to be 10 years, with an $72000 salvage value. At the beginning of 2026 , Sheffield spent $190000 to overhaulthe machinery. After the overhaul, Sheffield estimated that the useful life would be extended 4 years ( 14 years total), and the salvage value would be $36000. Depreciation expense for 2026 is $68150. $79800. $72650. $63650
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