An asset for drilling was purchased and placed in service by a petroleum production company....
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Accounting
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is ?$ 70 comma 000 70,000?, and it has an estimated MV of ?$ 13 comma 000 13,000 at the end of an estimated useful life of 11 11 years. Compute the depreciation amount in the fourth fourth year and the BV at the end of the fifth fifth year of life by each of these? methods:
a. The SL method.
b. The 200 200?% DB method with switchover to SL.
c. The GDS.
d. The ADS.
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