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Question - Bonds Company purchased a new plant asset on April 1, 2015, at a cost of $355,500. It was estimated to have a service life of 20 years and a salvage value of $30,000. Bonds's accounting period is the calendar year.
Instructions
(a) Compute the depreciation for this asset for 2015 and 2016 using the straight-line method.
(b) Compute the depreciation for this asset for 2015 and 2016 using the sum of-the-years'-digits method.
(c) Compute the depreciation for this asset for 2015 and 2016 using the double-declining balance method.
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