Legan Inc. started its operations with $25,700 in cash with the issue of common stock dated Jan 1, Year 1. The proceeds was used to purchase equipment for $25,700 and had a salvage value of $4,500 with 4 years life. In the beginning of 5th year, equipment was being sold for $4,980 for cash (SLM depreciation) Revenue: ($) Year1=7,480 Year2=7,980 Year3=8,180 Year4=6,980 Year5=0 Required. Income Statement for each of the five years.

Legan Inc. started its operations with $25,700 in cash with the issue of common stock dated Jan 1, Year 1. The proceeds was used to purchase equipment for $25,700 and had a salvage value of $4,500 with 4 years life. In the beginning of 5th year, equipment was being sold for $4,980 for cash (SLM depreciation) Revenue: ($) Year1=7,480 Year2=7,980 Year3=8,180 Year4=6,980 Year5=0 Required. Income Statement for each of the five years.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 2BCRQ

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