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Use the following to answer questions 18 - 19 AD Enterprises purchased equipment for $400,000 on January 1, year 1. The equipment is expected to
Use the following to answer questions 18 - 19 AD Enterprises purchased equipment for $400,000 on January 1, year 1. The equipment is expected to have a 5- year life, with a residual value of $50,000 at the end of its service life. 18. $ Using the double-declining balance method, determine depreciation expense for year 2. 19. $_ Using the straight-line method, determine book value at the end of year 2. Use the following to answer questions 20 - 22 AL Construction is in the process of closing its operations. It sold its 3-year-old Caterpillar 279C Compact Track Loader for $150,000. The loader originally cost $210,000 and had an estimated useful life of 10 years and an estimated residual value of $5,000. The company uses straight-line depreciation for all equipment. 20. $__ Calculate the book value of the loader at the end of the 3rd year. 21. $_ _What was the gain or loss on the sale of the loader at the end of the 3rd year; (if loss, put-in front of your answer)
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