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Chapter 2
Illustration 2
The depreciable amount of $75,000 calculated above will be charged as an
expense over the useful life of the asset.
On a straight-line basis this would give an annual charge of $75,000/5 =
$15,000.
Using the reducing balance method would still require $75,000 to be charged
as an expense over 5 years, calculating an appropriate percentage.
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