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problem1: On january1, 2006 Carson Company purchased machine at a cost of $420,000. The machine was estimated to have a useful life of five (5) years and a salvage value of $60,000. The firm uses the sum of the year’s digits method of depreciation. Determine what should the accumulated depreciation be at December 31, 2008?

problem2: Suppose the straight-line method of amortization is used, the average yearly interest expense on a $250,000, 11%, twenty (20) year bond issued at 94 would be?

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