A machine now in use was purchased four years ago at a cost of $20,000. It has a book value of… 1 answer below »

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Economic Depreciation

A machine now in use was purchased four years ago at a cost of $20,000. It has a book value of $6,246. It can be sold for $7,000, but could be used for three more years, at the end of which time it would have no salvage value. What is the current amount of economic depreciation for this asset?

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