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    Wichita Clinic

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    Wichita Clinic purchased a new surgical laser for $84,000. The estimated salvage value is $4,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,100 hours in year 2; 2,400 hours in year 3; 1,900 hours in year 4; 2,000 hours in year 5.

    Instructions
    (a) Compute the annual depreciation for each of the five years under each of the following methods:
    (1) straight-line.
    (2) units-of-activity.

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    Solution Preview

    PART VI - DEPRECIATION

    Wichita Clinic purchased a new surgical laser for $84,000. The estimated salvage value is $4,000. The laser has a useful life of five years and the clinic expects to use it 10,000 hours. It was used 1,600 hours in year 1; 2,100 hours in year 2; 2,400 hours in year 3; 1,900 ...

    Solution Summary

    This solution is comprised of a detailed explanation to compute the annual depreciation for each of the five years under each of the following methods:
    (1) straight-line.
    (2) units-of-activity.

    $2.19

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