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Your company is considering the purchase of a secondhand scanning microscope at a cost of $10,500 with an estimated salvage value of $500 and a
Your company is considering the purchase of a secondhand scanning microscope at a cost of $10,500 with an estimated salvage value of $500 and a projected useful life of 4 years. Determine the straight-line (SL), sum-of-years-digits (SOYD) and double declining balance (DDB) depreciation schedules. If the Before Tax Cash Flow for year 3 is $10,000 then what is the Taxable Income in year 3 for each depreciation method? SL $5500, SOYD $3500, DDB $2650.00 SL $8125, SOYD $8000, DDB $7828.00 SL $1875, SOYD $2000, DDB $2172.00 SL $7500, SOYD $8000, DDB $8687.50
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