A company purchases a machine for $55,000, which has a useful life of 8 years and an

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A company purchases a machine for $55,000, which has a useful life of 8 years and an estimated residual value of $8,000. After three years of use, the remaining life is estimated to be three years with a residual value of $5,000. What is depreciation expense in year four assuming straight-line depreciation?
a. $6,250
b. $8,333
c. $10,792
d. $12,458

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Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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