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Question - Baggins Corporation purchased equipment on January 1, 2019 for $750,000, estimating a ten-year useful life and a residual value of $50,000. In 2019, 2020, and 2021, Baggins depreciated the asset using the straight-line method. Beginning January 1, 2022, Baggins changed to sum-of-years'-digits depreciation for this equipment. At the time of the change in depreciation method, there was no change in residual value or useful life.
What depreciation will Baggins record for the year 2019 on this equipment.
What is the book value of the equipment at January 1, 2022?
What depreciation would Baggins record for the year 2022 on this equipment?
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