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Timeton Inc. and Roseton Inc. purchase identical assets for $850,000 each. The assets of both the companies are estimated to have same life. However, Timeton
Timeton Inc. and Roseton Inc. purchase identical assets for $850,000 each. The assets of both the companies are estimated to have same life. However, Timeton estimates the residual value to be $6,000 and Roseton estimates the residual value to be $10,000. Both the companies use double-declining balance method of depreciation. Which of the following is true of these companies?
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