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a mid sized business will purchase some new office
furniture and equipment. it will cost 400,000. for internal
purposes it will depreciate the equipment using straight line
depreciation over a period of 6 years. it’s estimated salvage value
will be 20,000.

a) show the depreciation in each year and the book
value in each year using straight line depreciation

b. repeat the calculation using a rate such that the
book value will equal the estimated salvage value.