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Calculate the difference in net income

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Reference no: EM132565918

Question - A company purchases equipment costing $24 000, which it expects to last 6 years and to have a salvage value of $3000.

Required -

A. If the equipment were bought on the first day of Year 1, which declining-balance method (true declining balance or 50% method) would produce the highest net income for the company? By how much?

B. Would your answer to Part D be different if the equipment were bought with only one month left in Year 1? If yes, calculate the difference in net income.

Reference no: EM132565918

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