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Question - AA Riser owns machinery for moving and delivering plants to its customers. The recorded cost of the machinery is $38,000. It is estimated that the machinery will be able to move 120,000 plants over its life. The company depreciates the machinery using straight-line depreciation over a useful life of twelve years and an estimated residual value of $2,000. Calculate the amount that will be charged annually as depreciation?
$3,000
$3,167
$3,600
$3,800
For a multicorporate entry, how is the recognition of gains or losses on bond retirement changed when emphasis is placed on the economic entity.
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