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Suppose we have an asset with an initial cost of 1 0 , 0 0 0 , a useful life of 5 years and an

Suppose we have an asset with an initial cost of 10,000, a useful life of 5 years and an estimated residual value of nil. The asset is now 3 years old and therefore has a carrying value (net book value) of 4,000. After 3 years, the assets value is reviewed and its fair value is 6,000. Show how the depreciation will be adjusted under the gross method and net method.

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