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At December 31, 2020, YZA Corporation has a piece of equipment with the following information:
Cost: $100,000Accumulated depreciation: $55,000Undiscounted net expected future cash flows: 42,000Estimate FMV: 39,000
Point 1: YZA plans to continue using the asset in its business for the foreseeable future. Additionally, as of January 1, 2021, the asset has an estimated remaining useful life of 4 years and an estimated salvage value of $14,000.
Question 1: What should YZA record for depreciation expense on the piece of equipment on the 2021 income statement?
6,250
7,000
7,750
21,500
9,750
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