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Question - Equipment was purchased for $150,000. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life. What the depreciation expense each year using the straight-line method?
a. $24,000.
b. $24,600.
c. $35,400.
d. $29,400.
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