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Question - Sandhill Ltd. purchased a delivery truck on January 1, 2018, at a cost of $80,640. The truck is expected to have a residual value of $7,380 at the end of its 4-year useful life. Sandhill has a December 31 year end. Use the diminishing-balance method and assume the depreciation rate is equal to double the straight-line rate.
Required -
Calculate the depreciation for each year of the truck's life.
Calculate the depreciation in total over the truck's life.
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