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Question - On August 1, 20X6, Hanif Haulers Ltd. purchased specialized trucks and loaders to haul goods between Nunavut and northern Ontario during the winter. The trucks and loaders cost $225,000 in total. They are expected to have a useful life of five years, after which they will have a residual value of $42,000. Hanif Haulers received a government grant equal to 30% of the cost of the trucks and loaders. The company uses the net method for reporting government grants and depreciates all equipment on a straight-line basis.
Hanif Haulers' accounting policy for recording depreciation is to record depreciation expense in the month of acquisition but not in the month of disposal. The company's fiscal year end is June 30.
What is the accumulated depreciation balance in Hanif Haulers' accounting records at its 20X8 fiscal year end?
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