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Bet'r Bilt Toys Just Purchased Some Machinery at a Cost

Question 29

Multiple Choice

Bet'r Bilt Toys just purchased some machinery at a cost of €230,000.Which of the following will correctly give you the book value of this equipment at the end of year 2 if the 20% reducing
Balance method of depreciation is used?
I.52% of the asset cost.
II.64% of the asset cost.
III.68% of 80% of the asset cost.
IV.The asset cost, minus 20% of the asset cost, minus 32% of 80% of the asset cost.


A) II only.
B) III and IV only.
C) I and III only.
D) II and IV only.
E) I, II, III, and IV.

Correct Answer:

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