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A New Piece of Equipment Costs $18,000 with a Residual

Question 89

Multiple Choice

A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of five years. Assuming twice the straight-line rate, the book value at the end of year 2 using the declining-balance method is:


A) $7,200
B) $6,480
C) $11,520
D) $18,000
E) None of these

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