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Shining Stars Ltd. reported the following results for its past three fiscal years (amounts in millions): 2018 2019 2020 Net income $35 $25 $45 1.

Shining Stars Ltd. reported the following results for its past three fiscal years (amounts in millions):

2018 2019 2020
Net income $35 $25 $45

1. The company later discovers that its ending inventory for 2018 was overstated by 2.5 million. However its ending inventories for both 2019 and 2020 were correctly stated.

Required:

What was Shining Stars Ltd. correct total profit for the three-year period (that is, the sum of all three years)?

2.

Assume that at the beginning of 2020, Spud Organics Ltd. purchased a tractor at a cost of $108000. Spud Organics expects the tractor to remain useful for 5 years (4,000 hours) and to have a residual value of $15,000. Spud Organics expects to use the tractor 800 hours the first year and 1,000 hours each year during years 2 through 4 and 1,200 hours the last year.

Required:

What is Spud Organic's first-year depreciation on the tractor using the double diminishing balance method? Round your answer to the nearest dollar.

3.

Assume that at the beginning of 2020, The Rocky Mountaineer purchased a railcar at a cost of $500,000. Rocky Mountaineer expects the railcar to remain useful for 5 years and to have a residual value of $100,000.

Required:

Compute Rocky Mountaineer's fourth-year depreciation on the railcar using the double diminishing balance method.

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