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Question - Panama Company purchased a machine on March 15, 2018.
The related data is as follows:
Cost 3,000,000
Estimated useful life 10 years
Estimated residual life 150,000
The entity uses the straight-line method.
On Jan. 1, 2020, after a quality improvement review, the entity determined the following: New estimated useful life 12 years.
New estimated residual value 100,250. What is the depreciation of the machine in 2020?
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