Show the depreciation in each year

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Reference no: EM132144331

Question: A mid sized business will purchase some new office furniture and equipment. it will cost 400,000. for internal purposes it will depreciate the equipment using straight line depreciation over a period of 6 years. it's estimated salvage value will be 20,000.

a) show the depreciation in each year and the book value in each year using straight line depreciation

b. repeat the calculation using a rate such that the book value will equal the estimated salvage value.

Reference no: EM132144331

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