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NEW QUESTION: 1
A piece of equipment costs $200,000, has a useful life of 5 years and an estimated salvage value of
$50,000. How much depreciation expense should the company recognize in year 4 if it is using the sum-of- the- years' digits method of depreciation?
A. $26,666.67
B. $20,000
C. $30,000
D. $80,000
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Using the sum-of-the-years' digits the sum of the years is 15. In year 4 you would take 2/15 of the cost less the salvage value. 2/15 of $150,000 is equal to $20,000.
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Explanation:
References:
https://docs.microsoft.com/en-us/azure/app-service-web/web-sites-create-web-jobs#CreateScheduled
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