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Question
For each of the following fixed assets, determine the depreciation expense for Year 3.
Disposal date is N/A if asset is still in use.
Method: SL = straight-line; DDB = double-declining-balance
Assume the estimated life is 5 years for each asset.
Item | Cost | Residual Value | Purchase Date | Disposal Date | Depr. Method | Depr. Expense Year 3 |
| A | $40,000 | $ 4,000 | July 1, Year 3 | N/A | SL | |
| B | 50,000 | 5,000 | Jan. 1, Year 1 | Aug. 31,Year 3 | SL | |
| C | 60,000 | 2,000 | Oct. 1, Year 3 | N/A | DDB | |
| D | 80,000 | 10,000 | Jan. 1, Year 2 | Apr. 1, Year 3 | DDB |
Answer
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