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Billu Limited Purchased Equipment on January 1, 2009 for $275,000

question 76

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Billu Limited purchased equipment on January 1, 2009 for $275,000. It was estimated that the equipment would have a residual value of $25,000 at the end of its useful life. The asset's useful life was estimated at 5 years or 10,000 units of output. The company has a December 31 year end. Additional information: Billu Limited purchased equipment on January 1, 2009 for $275,000. It was estimated that the equipment would have a residual value of $25,000 at the end of its useful life. The asset's useful life was estimated at 5 years or 10,000 units of output. The company has a December 31 year end. Additional information:   Assuming the company uses the units-of-production depreciation method, calculate the depreciation expense for 2012. A) $25.00 B) $57,500 C) $63,250 D) $202,500 Assuming the company uses the units-of-production depreciation method, calculate the depreciation expense for 2012.

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