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On January 1, 2016, Phillips Company made a basket purchase including land, a building and equipment for $970,000. The apprai

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Answer #1

The recorded value of equipment =200000/(70000+980000+200000)*970000 =155200

Depreciation expense for 2016:

=DDB(cost,salvage,life,period)

=DDB(155200,10000,4,1)

=77600

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