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A. Depreciation 1. Suppose an asset has a zero salvage value: Cost basis of the asset (I) = $10,000; Useful life (N) = 5 years;
A. Depreciation 1. Suppose an asset has a zero salvage value: Cost basis of the asset (I) = $10,000; Useful life (N) = 5 years; Salvage value (S) = $0; a=(1/5)(2)=40%. Determine the optimal time to switch from DB to SL depreciation and the resulting depreciation schedule
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