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Problem - Revision of depreciation
Equipment with a cost of $300,000 has an estimated residual value of $42,000, has an estimated useful life of 24 years, and is depreciated by the straight-line method.
(a) Determine the amount of the annual depreciation.
(b) Determine the book value at the end of the fourteenth year of use.
(c) Assuming that at the start of the fifteenth year the remaining life is estimated to be five years and the residual value is estimated to be $20,000, determine the depreciation expense for each of the remaining five years.
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