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Burke Copy Center purchased a machine on January 1, 2006, for $180,000 and estimated its useful life and salvage value at ten years and $30,000, respectively. On January 1, 2011, the company added three years to the original useful-life estimate.
REQUIRED:
a. Compute the book value of the machine as of January 1, 2011, assuming that Burke recognizes the depreciation using straight-line.
b. Prepare the journal entry to record depreciation entered by the company on December 31, 2011, assuming that Burke uses straight-line.
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