A company purchases a machine in 2016 and ignores the estimated salvage value in computing...
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A company purchases a machine in 2016 and ignores the estimated salvage value in computing annual depreciation. The 2016 Net income will be understated given the use of which method(s)? Select one: a. Both Straight-line method and Double-Declining-Balance method b. Double-Declining-Balance method, but not Straight-line method c. Straight-line method, but not Double-Declining-Balance method d. Neither Straight-line method nor Double-Declining-Balance method Equipment was purchased at the beginning of 2015 for $204,000. At the time of its purchase, the equipment was estimated to have a useful life of six years and a salvage value of $24,000. The equipment was depreciated using the straight-line method of depreciation through 2017. At the beginning of 2018 , the estimate of useful life was revised to a TOTAL life of eight years (to 1/1/23) and the expected salvage value was changed to $15,000. The amount to be recorded for depreciation for 2018 , reflecting these changes in estimates, is: Select one: a. $12,375 b. $19,800 C. $22,800 d. $23,625 e. $17,260
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