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7.   New Heights Aviation purchased on January 1, 2020 a plane for $ 500,000. The plane...

7.   New Heights Aviation purchased on January 1, 2020 a plane for $ 500,000. The plane is expected to  

      have a 20 year life after which it can be sold for $ 100,000.

Required:

  1. Compute depreciation expense for first three years using straight line.
  2. Compute depreciation expense for the first three years using double-diminishing balance method.
  3. At the end of three years the plane is sold for $400,000. Prepare journal entry to record the sale assuming depreciation was recorded using straight line.

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ekkarill92 answered 1 year ago
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