How much depreciation expense will cameron company recognize

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Question - On Jan 1 of Year 1, Cameron Company purchased a sophisticated piece of equipment costing $300,000. The equipment had a 30,000 salvage value and a 10 year estimated useful life. As on Jan 1 of Year 4, technology has changed and it is feared that the value has been impaired. On January 1 of Year 4 it is projected that the equipment has a remaining useful life of 4 years, a salvage of zero, and that it will generate cahs flows of 45,000 at the end of each year for the next 4 years. The market interest rate is 10%. How much depreciation expense will Cameron Company recognize on this piece of equipment during Year 4? Using straight line depreciation.

A. 39,413

B. 42,784

C. 71,595

D. 35,661

E. 45,826

Reference no: EM131638739

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