Problem Statement: ECE Board November 1998
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.
- A. 7 years
- B. 8 years
- C. 9 years
- D. 10 years
The length of service life necessary is 9 years.
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