Consider a piece of equipment that costs $60,000. The estimated salvage value after six years is $9,000. The company uses the 200% declining balance method (R = 2/6) to record depreciation. A. What is the book value of the equipment after the second year of depreciation deductions? B. What is the depreciation deduction recorded for the third year?
Consider a piece of equipment that costs $60,000. The estimated salvage value after six years is $9,000. The company uses the 200% declining balance method (R = 2/6) to record depreciation. A. What is the book value of the equipment after the second year of depreciation deductions? B. What is the depreciation deduction recorded for the third year?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Consider a piece of equipment that costs $60,000. The estimated salvage
value after six years is $9,000. The company uses the 200% declining
balance method (R = 2/6) to record depreciation.
A. What is the book value of the equipment after the second year of
depreciation deductions?
B. What is the depreciation deduction recorded for the third year?
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