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A Company Purchased Office Equipment for $40000 and Estimated a Salvage

Question 303

Multiple Choice

A company purchased office equipment for $40000 and estimated a salvage value of $8000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is


A) 20%.
B) 25%.
C) 40%.
D) 5%.

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