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Question
On June 1, Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years or 30,000 hours.
Using straight-line depreciation, compute depreciation expense for the first year, which ends on December 31.
a. $17,500
b. $30,000
c. $12,500
d. $40,000
Answer
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