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On January 1, 2017, SJ Ltd. bought machinery for $800,000. The company applied double declining balance depreciation for this asset, with an estimated life of eight years, and an estimated $ 150,000 residual value. At the beginning of 2020, SJ Ltd. decided to change to the straight-line method of depreciation for this equipment to better reflect asset utility and appropriately treated the change as a change in estimate.
Problem 1: Determine the depreciation expense to record on this machine for 2020.
The future value of one for five periods at 8% is 1.46933. The future value of an ordinary annuity for five periods at 8% is 5.8666. The present value of an ordinary annuity for five periods at 8% is 3.99271. What was cost of the machine to Jenks?
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Membership in the Federal Reserve System is
Discounting of Notes Payable: On October 30,2016, Sanchez Company acquired a piece of machinery and signed a 12-month note for $24,000. The face value of the note includes the price of the machinery and interest. The note is to be paid in four $6,000..
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