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Question
On July 1, Harding Construction purchases a bulldozer for $228,000. The equipment has an 8-year life with a residual value of $16,000. Harding uses straight-line depreciation.
a. Compute the depreciation expense, and journalize the depreciation entry for the first year ending December 31.
b. Compute the third year’s depreciation expense, and journalize the depreciation entry for the third year ending December 31.
c. Compute the last year’s depreciation expense, and journalize the depreciation entry for the last year.
Answer
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