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Problem 1: Medical equipment that costs $500,000 today has $100,000 salvage value at the end of five years. If the straight-line depreciation method is used, what is the book value of the medical equipment at the end of two years?
a. $0 b. $20,000 c. $100,000 d. $280,000 e. $300,000 f. $340,000 g. $400,000 h. $500,000
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