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What is the annual amount of depreciation expense charged

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Reference no: EM132690102

Problem 1: Suppose that Petrobras assumes a zero salvage value for their "Equipment and other assets." For each $100 in new asset investments, what is the annual amount of depreciation expense charged to the income statement?

Problem 2: Suppose that other leading energy companies charge $12 in depreciation expense for each $100 invested in new equipment. Are Petrobras' depreciation policy assumptions materially different from those of their competitors? Support your answer.

Reference no: EM132690102

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