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Question 1: Cassidy Corporation purchased factory equipment that was installed and put into service on January 2, 2019, at a total cost of $55,000. Residual value was estimated at $3,000. The equipment is being depreciated over four years using the double-declining-balance method. For the calendar year 2020, Cassidy should record depreciation expense on this equipment of
Option 1: $27,500.
Option 2: $52,000.
Option 3: $13,750.
Option 4: $13,000.
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