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Question 1: The hospital has acquired medical diagnostic equipment that cost $3,000,000 total. In addition, the hospital had to pay $55,000 to have the equipment shipped to it from the manufacturer, and $60,000 to install the equipment. It is expected that the equipment has a 7-year useful life, and a $200,000 salvage value. Calculate the ten years of depreciation using straight line, double declining balance, and sum-of-the-years digits.
Equipment $3,000,000
Other Cost $115,000
Full Value $3,115,000
Useful Life 10
Salvage Value $200,000
Depreciable Base $2,915,000
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