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Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment $346,666 Useful life 5 years Salvage
Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment $346,666 Useful life 5 years Salvage value at end of useful life 6 Annual straightline depreciation $163,666 Annual income generated by asset {before deducting depreciation} $252,666 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the fol lowing table- Based on Net Book Value Based on Gross Book Value Annual Imputed Interest Year Income Before Income Net of Average Net Book Imputed Interest Average Gross Depreciation Depreciation Depreciation Value Charge Residual Income Book Value Charge 1 2 3 5
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