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Business, 26.11.2021 22:40 larenhemmings
The following information is available on a depreciable asset owned by Mutual Savings Bank:
Purchase dateJune 1, Year 1
Purchase price$85,000
Salvage value$10,000
Useful life10 year
Depreciation methodstraight-line
The asset's book value is $70,000 on June 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:
A. $8,125.00
B. $7,375.00
C. $4,062.50
D. $3,750.00
E. $7,812.50
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Answers: 3
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The following information is available on a depreciable asset owned by Mutual Savings Bank:
Purcha...
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