Prepare a schedule of depreciation for the first five years

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Question - A company purchases equipment costing $24 000, which it expects to last 6 years and to have a salvage value of $3000.

A. Prepare a schedule of depreciation for the first five years using the straight-line method.

B. For the same equipment, prepare a schedule of depreciation for the first five years using the true declining-balance method. Canada Revenue Agency's prescribed rate for depreciation is 30%.

C. Repeat the same type of calculations as in B. above, but this time assume CRA's 50% rule is in effect.

Reference no: EM132565939

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