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The Ayayai Clinic purchased a new surgical laser for $96,500. The estimated salvage value is $4,500. The laser has a useful life of five years
The Ayayai Clinic purchased a new surgical laser for $96,500. The estimated salvage value is $4,500. The laser has a useful life of five years and the clinic expects to use it 11,500 hours. It was used 1,900 hours in year 1; 2,500 hours in year 2; 2,700 hours in year 3; 2,100 hours in year 4; 2,300 hours in year 5. (a) Your answer is partially correct. Compute the annual depreciation for each of the five years under straight-line and units-of-activity methods. If you were the administrator of the clinic, which method would you deem as most appropriate? Which method would result in the lowest reported income in the first year? Which method would result In the lowest total reported income over the flve-year period
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