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An Asset for transportation purchased and placed in service by a petroleum production company. Its cost basis is $75,000, and it has an estimate MV of $15,000 at the end of an estimated useful life of 15 years. Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods:
(a) The SL method.
(b) The 200% DB method with switchover to SL
(c) The GDS method
(d) The ADS method
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Do you think such a policy will increase demand for electronic appliances.
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