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At the beginning of the year, Fun Ships cruises line purchased a cruise ship at a cost of $55 million. Fun Ships expects the ship to remain useful for 10 years (1,000,000 miles) and to have a residual value of $5 million.
Fun Ships puts 80,000 miles on the ship the first year and 115,000 miles the second year.
Requirements:
Compute Fun Ships' first and second year depreciation on the cruise ship using the following methods:
Straight-line
Units-of-production
Double declining balance
woody corp. had taxable income of 8000 in the current year. the amount of macrs depreciation was 3000 while the amount
The effect of these events and transactions on 2010 income from continuing operations net of tax would be:
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