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The Price of a Desktop Computer Purchased by Alpha Electronics

Question 40

Multiple Choice

The price of a desktop computer purchased by Alpha Electronics was $5,034. It cost $189 for delivery and $256 for installation. The salvage value at the end of a 5-year life is $424. Using the sum-of-the-years' digits depreciation, calculate the annual depreciation for year 4.


A) $337
B) $582
C) $596
D) $674

Correct Answer:

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