On January 3, 2011, the Popsi Cola Company purchased new bottle washing equipment for $104,000. The estimated residual value is $14,000. The equipment has a useful life of six years and the company expects to use it for a total of 12,000 hours. It was used 2,800 hours in year 1; 3,300 hours in year 2; 3,400 hours in year 3; and 2,900 hours in year 4. The company’s yearend is December 31.

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