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a. Suppose straight-line method of amortization is used, average yearly interest expense on $250,000, 11 percent, 20 year bond issued at 94 would be?

b. On january1, 2006 Carson Company bought equipment at cost of $420,000. Equipment was evaluated to have a useful life of 5 years and salvage value of $60,000. Carson uses sum-of-the-years-digits method of depreciation. What must accumulated depreciation be at December 31, 2008?

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