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Question
Equipment was purchased on January 5, Year 1, at a cost of $90,000. The equipment had an estimated useful life of 8 years and an estimated residual value of $8,000.
After using the equipment for 3 years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004.
Determine the straight-line depreciation expense for Year 4 and the following years.
Answer
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