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A company purchased factory equipment on April 1, 2022 for $159500. It is estimated that the equipment will have a $15500 sal

Multiple Choice Question 109 On January 1. a machine with a useful life of four years and a salvage value of $15000 was purch



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Answer #1
1 Depreciation expense = $     10,800
Workings:
Straight Line method:-
Depreciation expense = (Cost - Residual value) / useful Value
= ($159500 - $15500) / 10 years X 9/12
= $     10,800
2 Depreciation expense = $     26,250
Workings:
Straight Line method:-
Depreciation expense = (Cost - Residual value) / useful Value
= ($120000 - $15000) / 4 years
= $     26,250
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