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| Teaching Since: | May 2017 |
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| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Garns Photography Company purchased a new car on July 1, 2011, for $26,000. The estimated life of the car was five years or 110,000 miles, and its salvage value was estimated to be $1,000. The car was driven 9,000 miles in 2011 and 24,000 miles in 2012.
1. Compute the amount of depreciation expense for 2011 and 2012 using the following methods:
a. Straight-line
b. Units-of-production
2. Which depreciation method more closely reflects the used-up service potential of the car? Explain.
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