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1.Equipment acquired at the beginningof the year at a cost of $440,000 has an estimated residual valueof $25,000 and an estimated useful life of 8 years. Straight-linedepreciation is used.

Determine (a) the total amount to bedepreciated over the life of the asset,

(b) the amount of depreciation eachyear,

(c) the journal entry to record thefirst year’s depreciation,

(d) the book value of the asset at theend of the first year.

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Keith Leannon
Keith LeannonLv2
28 Sep 2019

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Equipment acquired at the beginning of the year at a cost of$280,000 has an estimated residual value of $45,000 and anestimated useful life of 16 years.

Determine: (a) the double-declining-balance rate,

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(c) the journal entry to record the first year’sdepreciation,

(d) the book value at the end of the first year,

(e) explain the advantages double-declining- balancemay have over straight line in depreciating assets.

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(b) the amount of depreciation for the year,

c) the journal entry to record the year’s depreciation,

(d) the book value of the asset at the end of the firstyear,

(e) explain why units of output may be preferred overstraight line as a method of depreciating the tractor

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