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Morgana Film Productions Inc. purchased a copier on Jan 1, 2011 for $11,700 with a residual value of $1200. Useful life is 5

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Answer #1

Depreciation per copy = (Cost - Salvage value)/Total copies

= (11,700-1200)/100,000 = 0.105 per copy

A)

2011 = 16000*0.105 = 1680

2012 = 14000, 0.105 = 1470

B)

Accumulated Depreciation = 1680+1470 = 3150

C)

Book value = 11,700 - 3150 = 8550

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