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Problem 1: Tofu Company purchased equipment that cost $110,000 cash on January 1, Year 1. The equipment had an expected useful life of six years and an estimated salvage value of $8,000. Tofu Company depreciates its assets under the straight-line method. What are the amounts of depreciation expense during Year 3 and the accumulated depreciation at December 31, Year 3, respectively?
A.$17,000 and $17,000. B.$17,000 and $68,000. C.$68,000 and $17,000. D.$17,000 and $51,000.
Financial Statement Analysis and Preparation
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