Calculate the annual depreciation amount

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Question: A precision tool for making automotive parts costs $300,000 and has a 5 year life (depreciable). The estimated salvage value of the tool is $28,000 at the end of 5 years.

Calculate the (1) annual depreciation amount and the (2) book value of the precision tool at the end of year 3. Let the investment of $300,000 occur at time zero.

Reference no: EM132048071

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