Brooklyn Orthopedic Clinic is expanding its operations and purchases an MRI machine. The acquisition cost of the

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Brooklyn Orthopedic Clinic is expanding its operations and purchases an MRI machine. The acquisition cost of the machine is $2,000,000. The costs to ship, install, and commission the machine total $750,000. The salvage value after 4 years is $300,000. Calculate the annual depreciation and accumulated depreciation using the following methods for each of the 4 years the asset was in use:

a. Straight-line (SL)

b. Double-declining balance (DDB)

c. Sum-of-the-years-digits (SYD)

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Accounting Fundamentals For Health Care Management

ISBN: 9781284265200

4th Edition

Authors: Steven A. Finkler, David M. Ward, Thad Calabrese

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