Question
The sole proprietorship business of Individual M purchased a machinery amounting to $30,000. The machinery is expected to be useful for a period of 4
The sole proprietorship business of Individual M purchased a machinery
amounting to $30,000. The machinery is expected to be useful for a period of 4 years
and have a residual value of $5,000. Individual M uses the double-declining method in
depreciating their fixed assets. How much would be the depreciation expense for
year 3?
1. $3,750.00
2. $2,500.00
3. $7,500.00
4. $1,250.00
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ANS 3750 Double declining rate 14yrs x 2 50rn ...
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
