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Depreciation

A machine cost $500,000 on April 1, 2006. Its estimated salvage value is $50,000 and its expected life is 8 years.

Calculate Depreciation expense to the nearest dollar

1. Straight-line for 2006
2. Double declining balance for 2007
3. Sum-of-the year's digits

PLEASE SHOW ALL WORK

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Answer 1:
Straight line depreciation for the entire year will be (500,000-50,000)/8 = 56,250
However, the machine was purchased ...

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$2.19