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Question: Changing the estimated life of an asset Assume that Global Positioning Systems paid $112,000 for equipment with a 14-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only four more years.

Requirements: 1. Record depreciation expense on the equipment for year 7 by the straight-line method.

2. What is accumulated depreciation at the end of year 7?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92648296

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