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Consider the purchase of a new farm truck (automobile). The specific information is: Total Purchase cost...

  1. Consider the purchase of a new farm truck (automobile). The specific information is:

Total Purchase cost = $150,000.00              Purchase date = Jan 1, 2020

Useful life = 6 years                                      Salvage value = $50,000.00

Note: each highlighted box is worth 1 point

Complete each depreciation table.

ECONOMIC DEPRECIATION:

  1. Fill in the table using the straight-line depreciation method for economic depreciation. (5 points)

Year

Remaining value at beginning of year

Depreciation

Remaining value at end of year

2020

2021

2022

2023

2024

2025

  1. Fill in the table using the straight-line method for economic depreciation as if the purchase date was October 1, 2020 (partial year method) (7 points)

Year

Remaining value at beginning of year

Depreciation

Remaining value at end of year

Oct 1 - Dec 31, 2020

2021

2022

2023

2024

2025

Jan 1 - Sept 30, 2026

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