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Economics

Question: A mid sized business will purchase some new office furniture and equipment. it will cost 400,000. for internal purposes it will depreciate the equipment using straight line depreciation over a period of 6 years. it's estimated salvage value will be 20,000.

a) Show the depreciation in each year and the book value in each year using straight line depreciation

b) Repeat the calculation using a rate such that the book value will equal the estimated salvage value.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92599077

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