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The Duchossois Tennis Center purchased a ball machine on January 1, 2001 for $10,000. The machine has a useful life of 5 years and a
The Duchossois Tennis Center purchased a ball machine on January 1, 2001 for $10,000. The machine has a useful life of 5 years and a salvage value of $1000. David found a deal online but had to spend an additional $1,000 to get it into working condition. In addition, the tennis center incurs the following costs related to the purchase: Freight Installation charge $1,000 $500 A. What is the acquisition cost of the ball machine (on the company's balance sheet) B. If the tennis center depreciates the ball machine using the double-declining method, what is the book value of the ball machine at the end of 2003
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