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Twin-Cities, Inc., purchased a building for $400,000. Straight-line depreciation was used for each of the first two years using the following assumptions: 25-year estimated useful life, with a residual value of $100,000.
a.Calculate the annual depreciation for the first two years that Twin-Cities owned the building.(Omit the "tiny_mce_markerquot; sign in your response.)
Annual depreciation $
b.Calculate the book value of the building at the end of the second year.
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Which of the following statements about current liabilities is true?
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