Brazil Group purchases a vehicle at a cost of $50,000 on January 2, 2017. Individual components of the vehicle and useful lives are as follows. Cost Useful Lives Tires $

Brazil Group purchases a vehicle at a cost of $50,000 on January 2, 2017. Individual components of the vehicle and useful lives are as follows. Cost Useful Lives Tires $ 6,000 2 years Transmission 10,000 5 years Trucks 34,000 10 years Instructions (Assume no residual (salvage) value.) (a) Compute depreciation expense for 2017, assuming Brazil depreciates the vehicle as a single unit. (b) Compute depreciation expense for 2017, assuming Brazil uses component depreciation. (c) Why might a company want to use component depreciation to depreciate its assets?

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