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Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be: Note: Do not round the depreciation rate per year. Multiple Choice $19,680 and $36,720, respectively. $21,600 and $25,200, respectively. $21,600 and $32,400, respectively. $19.680 and $29520 espectively

Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be: Note: Do not round the depreciation rate per year. Multiple Choice $19,680 and $36,720, respectively. $21,600 and $25,200, respectively. $21,600 and $32,400, respectively. $19.680 and $29520 espectively

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be: Note: Do not round the depreciation rate per year. Multiple Choice $19,680 and $36,720, respectively. $21,600 and $25,200, respectively. $21,600 and $32,400, respectively. $19,680 and $29,520, respectively.
Transcribed Image Text:Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be: Note: Do not round the depreciation rate per year. Multiple Choice $19,680 and $36,720, respectively. $21,600 and $25,200, respectively. $21,600 and $32,400, respectively. $19,680 and $29,520, respectively.
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