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9 On January 1, 20X5, Toquerville Company purchased equipment for $100,000. The equipment has a 10-year expected useful life and $0 residual value. Initially, the company used double-declining-balance depreciation. Two years later, on January 1, 20X7, the company changed to straight-line depreciation. The expected useful life and residual value are unchanged. Compute depreciation expense for 20X7, the year of the change. $7,314 $10,000 $9,217 $8,000

9 On January 1, 20X5, Toquerville Company purchased equipment for $100,000. The equipment has a 10-year expected useful life and $0 residual value. Initially, the company used double-declining-balance depreciation. Two years later, on January 1, 20X7, the company changed to straight-line depreciation. The expected useful life and residual value are unchanged. Compute depreciation expense for 20X7, the year of the change. $7,314 $10,000 $9,217 $8,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9 On January 1, 20X5, Toquerville Company purchased equipment for $100,000. The equipment has a 10-year expected useful life and $0 residual value. Initially, the company used double-declining-balance depreciation. Two years later, on January 1, 20X7, the company changed to straight-line depreciation. The expected useful life and residual value are unchanged. Compute depreciation expense for 20X7, the year of the change. $7,314 $10,000 $9,217 $8,000
Transcribed Image Text:9 On January 1, 20X5, Toquerville Company purchased equipment for $100,000. The equipment has a 10-year expected useful life and $0 residual value. Initially, the company used double-declining-balance depreciation. Two years later, on January 1, 20X7, the company changed to straight-line depreciation. The expected useful life and residual value are unchanged. Compute depreciation expense for 20X7, the year of the change. $7,314 $10,000 $9,217 $8,000
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