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Question: The hospital has acquired medical diagnostic equipment that cost $3,000,000 total. In addition, the hospital...

Question: The hospital has acquired medical diagnostic equipment that cost $3,000,000 total. In addition, the hospital had to pay $55,000 to have the equipment shipped to it from the manufacturer, and $60,000 to install the equipment. It is expected that the equipment has a 7-year useful life, and a $200,000 salvage value. Calculate the ten years of depreciation using the straight line, double declining balance, and sum-of-the-years digits.

I am getting confused about how to solve and am having issues with the three methods balancing. Please show work.

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Expert Solution

Depreciation is calculated based on useful life of asset- 7 years. Also please confirm if life is 10 years. Question has mentioned 7 years of useful life and calculation for 10 years.

ekkarill92 answered 1 year ago
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