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    Replacement Cost Depreciation and Historical Cost Depreciation

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    You purchased an MRI scanner two years ago for $2.0 million. The MRI has a 5-year depreciable life with no salvage value. If that same MRI now costs $3.0 million, what would the difference between replacement cost depreciation and historical cost depreciation be?

    A. $1,000,000
    B. $200,000
    C. $600,000
    D. None of the above

    My answer is A

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