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A business purchased an asset that had a total cost of $125000 and a residual va...
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A business purchased an asset that had a total cost of $125000 and a residual value of $5000. The asset is expected to service the business for a period of 5 years. The machine was purchased on January 1st of the current year and has been in service one complete year.
If business used double declining balance method (aka reducing-balance method) and rate of 40%, how much the annual depreciation for year 1 would be? (ignore VAT)
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