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Tabesh Corporation purchased machinery on January 1, 2007, at acost of $210,000. The estimated useful life of the machinery is 4years, with an estimated residual value at the end of that periodof $10,000. The company is considering different depreciationmethods that could be used for financial reporting purposes.
Prepare separate depreciation schedules for the machinery usingthe straight-line method, and the declining-balance method usingdouble the straight-line rate. Fill in the following amounts foreach method.
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A company that changes from the declining-balance method of depreciation for previously recorded assets to the straight-line method should report the change as a(n)
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