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A New Computer Costs $5,000 and Is Expected to Save

Question 31

Multiple Choice

A new computer costs $5,000 and is expected to save $500 per month in employee time because of its speed. It has an expected life of 3 years. Using straight-line depreciation, how much is the computer worth at the beginning of the second year?


A) $500
B) $4,500
C) $3,333.34
D) $1,666.66

Correct Answer:

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