Assume that Alpha Communications paid $75,000 for equipment with a 15-year life and zero expected residual value.

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Assume that Alpha Communications paid $75,000 for equipment with a 15-year life and zero expected residual value. After using the equipment for six years, the company determines that the asset will remain useful for only five more years.

Requirements

1. Record depreciation on the equipment for year 7 by the straight-line method.

2. What is accumulated depreciation at the end of year 7?

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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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Question Posted: Dec 16, 2011 08:55 AM

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Assume that Alpha Communications paid $75,000 for equipment with a 15-year life and zero expected residual value.

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Financial and Managerial Accounting

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