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Silva company

Silva Company uses straight-line depreciation and is considering a capital expenditure of which the following relevant cash f
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Answer #1

Ans. Option 1st $460,000

Explanation and calculation:

Total depreciation expense over the useful will be equal to the depreciable cost of assets.

Depreciable cost = Initial investment - Residual value

= $500,000 - $40,000

= $460,000

*So the total depreciation expense is $460,000.

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