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Question - The Volcano Company purchases a machine on 1/1/12 for $100,000. The Straight-Line method of depreciation was used and salvage value was estimated to be zero. On 1/1/16 Volcano sold the machine for $40,000. A gain of $20,000 was recorded. What was the original estimated life of the machine?
A. 4 years
B. 5 years
C. 6 years
D. 8 years
on oct. 1 2011 the delaware corp. which maintains a periodic inventory signed a firm purchase commitment to acquire
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