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Sheffield Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has
Sheffield Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year 1 2 3 5 Total Straight-Line $12,060 (a) 12,060 12,060 12,060 12,060 $60,300 Sum-of-the- Years'-Digits $20,100 Cost of asset $ 16,080 Answer the following questions. 12,060 eTextbook and Media 8,040 4,020 $60,300 What is the cost of the asset being depreciated? Double-Declining- Balance $26,800 16,080 9,648 5,789 1.983 $60,300
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