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Martha buys a duplicating machine for 20,000 with a residual value of 2,000.eestimated life is five years. calculate the book value at the end of year 1. assuming twice the straight -line rate.

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Asset;value=20000\* Life;time,n=5;years\*Residual;value=2000\* rate=frac20000-20002000	imes 5=18;%\*As;given;in;the;question; twice;the;straight;line;rateRightarrow 18	imes 2=36;%\* Depreciation;at;the;end;of;1;year=36;%;of;20000\*Rightarrow frac20000	imes 36100=7200\* Value;at;the;end;of;1;year= 20000-7200=12800\* So,;at;the;end;of;1;year;book;value;will;be;12800

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Deependra Verma

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