A piece of equipment costing $50,000 is expected to last 15 years,after which it will have a salvage value of $5000.For the first 3 years,the constant percentage method is used for depreciation with a 20% rate of depreciation.After that,the company switches to the straight line method of depreciation.What is the book value of the equipment 6-years after it was purchased?
A) $16,600
B) $17,280
C) $19,200
D) $20,450
Correct Answer:
Verified
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