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The XYZ Company acquired a building at a cost of $520,000. At the time of acquisition, the estimated residual value was $40,000 and the estimated
The XYZ Company acquired a building at a cost of $520,000. At the time of acquisition, the estimated residual value was $40,000 and the estimated life was 12 years. Five years have passed, and total accumulated depreciation (on a straight-line basis) is $200,000. In reviewing its assets, XYZ has determined that the remaining useful life is only 3 years and that a more realistic salvage value is $20,000. Assuming that XYZ continues to use the straight-line method of depreciation, how much depreciation should be taken in each of the 3 remaining years of the assets useful life
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