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A machine was purchased for $100,000. Its economic life is 5 years. If it depreciates in a straight line what is its book value after 3 years? What is the market value after 3 years?

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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A machine was purchased for $100,000. Its economic life is 5 years. If it depreciates in a straight line what is its book value after 3
years? What is the market value after 3 years?

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