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Question - Calculate depreciation
A machine cost $800,000 on April 1, 2014. Its estimated salvage value is $80,000 and its expected life is eight years.
Instructions
(1) Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used.
(a) Straight-line for 2014
(b) Double-declining balance for 2015
(c) Sum-of-the-years'-digits for 2015
(2) Which method would result in the smallest income amount for 2015?
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