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Problem - Vaughn Company purchases equipment on January 1, Year 1, at a cost of $518,000. The asset is expected to have a service life of 12 years and a salvage value of $50,000.
Required -
a) Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method.
b) Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'- digits method.
c) Compute the amount of depreciation for each of Years 1 through 3 using the double-declining balance method.
Financial Statement Analysis and Preparation
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