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Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in
Year 1: Jan. 1, Year 1 Purchased equipment for $90,000 cash. The equipment was estimated to
have a five-year life and $5,000 salvage value and was to be depreciated using the straight-line
method. Dec. 31, Year 1 Recorded depreciation expense for Year 1. Sept. 30, Year 2 Undertook
routine repairs costing $900. Dec. 31,

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