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anonymous
 5 years ago
For tax purposes, businesses frequently
depreciate equipment. Two methods of depreciation are
straightline depreciation and sumoftheyears’digits.
Suppose that a college student buys a $3000 computer to
start a business that provides Internet services. This student
estimates the life of the computer at 4 years, after
which its value will be $200. The difference between
$3000 and $200, or $2800, may be deducted from the student’s
taxable income over a 4year period.
In straightline depreciation, equal portions of $2800
are deducted each year over the 4 years. The sumoftheyears’
digits m
anonymous
 5 years ago
For tax purposes, businesses frequently depreciate equipment. Two methods of depreciation are straightline depreciation and sumoftheyears’digits. Suppose that a college student buys a $3000 computer to start a business that provides Internet services. This student estimates the life of the computer at 4 years, after which its value will be $200. The difference between $3000 and $200, or $2800, may be deducted from the student’s taxable income over a 4year period. In straightline depreciation, equal portions of $2800 are deducted each year over the 4 years. The sumoftheyears’ digits m

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anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0method calculates depreciation differently. For a computer having a useful life of 4 years, the sum of the years is computed by 1 1 2 1 3 1 4 5 10.
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