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Question - Ferguson Company purchased a depreciable asset for €100,000. The estimated residual value is €10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset?
a. €9,000
b. €10,000
c. €100,000
d. €90,000
Prepare the entry to record Penas payment of $8,000 in cash to the partnership and (2) the distribution of cash to the partners with credit balances.
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Smiley, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $100,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..
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It produces its candy and sells it to distributors in May for $220,000, but it does not receive payment until June.
Compute depreciation for the first year under each of the following methods: (a) straight-line, (b) units of production, and (c) double-declining-balance. (Show your work.)
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