A large piece of manufacturing equipment at a factory was purchased for $80,000. Unfortunately, it loses 20%
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Question:
- A large piece of manufacturing equipment at a factory was purchased for $80,000. Unfortunately, it loses 20% of its value annually, due to intense usage.
- What will be the value of the equipment four years from now? Remember that the original value depreciates, or decreases, in net worth. As a hint, what is the one change you need to make to the annual appreciation formula to apply it to annual depreciation?
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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