Question: a) Calculate amortization using straight line and declining balance methods. Asset: Equipment acquired for $50,000 Useful Life: 20 years Rated to 500,000 KM life, 60,000

a) Calculate amortization using straight line and declining balance methods.

Asset: 

Equipment acquired for $50,000

Useful Life: 20 years

Rated to 500,000 KM life, 60,000 KM current year

Asset deteriorates at 30% a year

b) Prepare a journal entry for each amortization calculation above.

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