Using the FASB Codification as a guide, a small computer manufacturing industry you are working for would like to make some adjustments to their straight-line depreciation for its manufacturing equipment while in the process of obtaining a bank loan. The company has determined the estimated life of the equipment to be 20 years and the estimated salvage value for this equipment to be higher than the original cost of the equipment. As a new accountant for this company, how would you resolve this situation?

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Solution Answer Under FASB guideline Depreciation covered under ASC 36010501 Major clause under this ... View the full answer