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Greater annual straight-line depreciation

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Asset A will have a useful life of 9 years and cost $5M; it will have installation costs of $750,000 and an estimated salvage or residual value $500,000. Asset B will have a useful life of 3 years and cost $2.5M; it will have installation costs of $250,000 and a salvage or residual value of $160,000. Which asset will have the greater annual straight-line depreciation and by how much?

Reference no: EM131318612

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