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Computation of accumulated depreciation.
a. On january1, 2006 Carson Company purchased equipment at a cost of $420,000. The equipment was estimated to have a useful life of 5 years and a salvage value of $60,000. Carson uses the sum-of-the-years-digits method of depreciation. What should the accumulated depreciation be at December 31, 2008?
b. Assuming the straight-line method of amortization is used, the average yearly interest expense on a $250,000, 11 percent, 20 year bond issued at 94 would be
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