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On January 1, 2015, Missoula Corporation Bought Machinery for $800,000

Question 6

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On January 1, 2015, Missoula Corporation bought machinery for $800,000.They used double declining balance depreciation for this asset, with an estimated life of eight years, and an estimated $200,000 residual value.At the beginning of 2018, Missoula decided to change to the straight-line method of depreciation for this equipment, and treated the change as a change in estimate.For calendar 2018, the depreciation expense for this machinery is


A) $100,000.
B) $ 92,500.
C) $ 75,050.
D) $ 27,500.

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