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On June 1, 2014, Aaron Company Purchased Equipment at a Cost

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Essay

On June 1, 2014, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.
Using straight line depreciation, prepare the journal entry to record depreciation expense for (a) the first year, (b) the second year and (c) the last year.


Definitions:

Biochemistry

The branch of science concerned with the chemical processes and substances that occur within living organisms.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

ATP

Adenosine triphosphate, a molecule that carries energy within cells, facilitating various cellular functions.

Enzymes

Biological molecules that act as catalysts to speed up chemical reactions in the body, essential for numerous metabolic processes.

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