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The German Bakery Purchased a New Oven for $86,000

Question 57

Essay

The German Bakery purchased a new oven for $86,000. The freight charges were $1,600 and installation amounted to $2,000. The oven is expected to last four years and have a salvage value of $6,600. Using the straight-line method of depreciation, prepare a depreciation schedule for this oven.
German Bakery
Depreciation Schedule
Straight-line Method End of Year1234AnnualDepreciation Accumulated DepreciationBook Value(New)\begin{array}{c}\begin{array}{lll}\underline{\text {End of Year}}\\\\1 \\2 \\3 \\4 \end{array}\begin{array}{lll}\text {Annual}\\\underline{\text {Depreciation}}\\\\\\\\\\\\ \\\end{array}\begin{array}{lll}\text { Accumulated } \\\underline{\text {Depreciation}}\\\\\\\\\\\\ \\\end{array}\begin{array}{lll}\\\underline{\text {Book Value}}\\\text {(New)}\\\\\\\\\\ \\\end{array}\end{array}

Correct Answer:

verifed

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new: $89,600
$20,750; $20,750;...

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