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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,

(b) the double-declining-balance depreciation for the firstyear,

(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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Tod Thiel
Tod ThielLv2
28 Sep 2019

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