Use the information below to answer the following questions: Gotcha Company Ltd. acquired equipment on...
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Accounting
Use the information below to answer the following questions: Gotcha Company Ltd. acquired equipment on April 1, 2015, for $300,000. The residual value of the equipment is $30,000 and the estimated life is six years or 120,000 hours. 7. What will the amortization expense be for the year ended December 31, 2015, if Gotcha Company Ltd. uses double-declining-balance amortization? A) $75,000 B) $67,500 C) $100,000 D) $90,000 E) $95,000 8. Compute amortization expense for the year ended December 31, 2015, if Gotcha Company Ltd. uses straight-line amortization. A) $33,750 B) $37,500 C) $11,250 D) $45,000 E) $26,250
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