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Question
Equipment acquired at the beginning of the year at a cost of $280,000 has an estimated residual value of$45,000 and an estimated useful life of 16 years. Determine (a) the double-declining-balance rate and (b) the double-declining-balance depreciation for the first year.
Solution
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Step 1
1 of 7This exercise will calculate the depreciation rate and first year's expense using the double-declining balance method.
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