Estimate salvage value for the equipment

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Reference no: EM131814202

Question: Using the FASB Codification as a guide, a small computer manufacturing industry you are working for would like to make some adjustments to their straight line depreciation for its manufacturing equipment while in the process of obtaining a bank loan. The company has determined the estimated life of the equipment to be 20 years and the estimated salvage value for this equipment to be higher than the original cost of the equipment. As a new accountant for this company, how would you resolve this situation.

Reference no: EM131814202

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