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The Miller Company purchased a new headquarters building on January 1 at a cost of $50 million. The building is expected to last 20 years,

The Miller Company purchased a new headquarters building on January 1 at a cost of $50 million. The building is expected to last 20 years, at which time its residual value is expected to be $5 million.

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Calculate the depreciation expense for each of the first three years on the new headquarters building using each of the following methods:

Enter answers in millions, rounding to two decimal places. For example, $3,750,000 equals $3.75 million.

Year 1 Year 2 Year 3
1. Straight-line $Answer million $Answer million $Answer million
2. Double-declining balance $Answer million $Answer million $Answer million

Does the choice of depreciation method impact a firm's cash flow from operations?

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