Chapter 11 - Solutions Manual 93 - Ethics Case 1110...

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Ethics Case 11–10 Requirement 1 2013 expense using CEO's approach:$42,000,000 Cost $4,200,000 Previous annual depreciation ($42,000,000 ÷ 10 years) x 2 years 8,400,000 Depreciation to date (2011–2012)33,600,000 Book value ÷ 3 Estimated remaining life(2013–2015)$11,200,000 New annual depreciation 2013 income would include only depreciation expense of $11,200,000. 2013 expense using Heather's approach:$42,000,000 Cost $4,200,000 Previous annual depreciation ($42,000,000 ÷ 10 years)

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