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On January 1, the Matthews Band pays $69,000 for sound equipment. The band estimates it will use this equipment for five year

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Answer #1

Depreciation per concert = (Total cost - Residual value) / Total estimated units over the useful life

Depreciation per concert = ($69,000 - $2,000) / 200 concerts

Depreciation per concert = $335

Concerts in first year = 55 concerts

Depreciation in first year = Concerts in first year * Depreciation per concert

Depreciation in first year = $335 * 55 concerts = $18,425

Depreciation in first year = $18,425

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