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Business, 30.11.2019 02:31 gtamods402

Mobic inc. acquired some manufacturing equipment in january 2015 for $400,000 and depreciated it $40,000 each year for three years on a straight-line basis. during 2018, the manufacturer announced a new technology for this type of equipment that will make the old models obsolete by the end of 2021. as a result, mobic will plan to replace the equipment at that time, effectively reducing the asset's life from ten to seven years. in its financial statements for 2018, mobic should:
a) charge $280,000 in depreciation expense. b) report the book value of the equipment in its december 31,2018 balance sheet at $210,000.c) make an adjustment to retained earnings for the error in measuring depreciation during 2015-2017.d) none of these answer choices are correct

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Mobic inc. acquired some manufacturing equipment in january 2015 for $400,000 and depreciated it $40...
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