Considering two methods of depreciation

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The FOURX Corp. has purchased $12,000 of experimental equipment. The anticipated salvage value is $400 at the end of its 5-year depreciable life. This profitable corporation is considering two methods of depreciation: sum of years' digits and double declining balance. If it uses 7% interest in its comparison, which method do you recommend? Show computations to support your recommendation. Use a spreadsheet to develop your solution. Depreciation and Book Value

Reference no: EM131809797

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