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The following information applies to the questions displayed below.) Tory Enterprises pays $254,400 for equipment that will last five years and have a $45,200 salvage
The following information applies to the questions displayed below.) Tory Enterprises pays $254,400 for equipment that will last five years and have a $45,200 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,100 annually, after deducting all expenses except depreciation. Line following information appies to the questions displayed below. Tory Enterprises pays $254,400 for equipment that will last five years and have a $45,200 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,100 annually, after deducting all expenses except depreciation. Exercise 8-9 Straight-line depreciation and Income effects LO P1 Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation is used. Year 1 Year 2 Year 3 Year 4 Year 5 Totals Income Before Depreciation Net (Pretax) Depreciation Expense Income $ 90,100 90.1001 90,100 90.100 90.100 $ 450.500S 0S
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