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A copy machine acquired on March 1, 2011 with a cost of $1,410 has an estimated useful life of 3 years. Assuming that it will have a residual value of $150, determine the depreciation for the first and second year by the straight-line method.
Straight-line depreciation = (cost-estimated residual value)/ estimated life
Straight-line depreciation = ($1,410 - $150)/3
Straight-line depreciation = $420 per year
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