Question: On January 1 , 2 0 2 4 , Paramount LLC purchased new equipment in the amount of $ 9 7 , 0 0 0

On January 1,2024, Paramount LLC purchased new equipment in the amount of $97,000. Paramount also paid $8,000 for installation and modifications as well as $4,000 for training. In addition, the company paid $12,000 for repairs during the year. The CFO estimated that the equipment had a salvage value of $9,000 and would be used for 5 years. What is the yearly depreciation expense under the straight-line method? What is the net book value after the 2nd year?

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