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A surface mount placement machine is being purchased for $1783000; it has an estimated useful life of 8 years and a salvage value of $93700 at that time. Determine the depreciation allowance for the 5th year and the book value at the end of the 5th year using Declining Balance where the depreciation rate is determined by the salvage value and time in service.

1. What is the depreciation rate? (Declining Balance)

2. Determine the depreciation allowance for the 5th year (Declining Balance)

3. Determine the book value at the end of the 5th year (Declining Balance)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92885345

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