Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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A&C Property Management, LLC purchased a piece of equipment that cost $10,000 and spent $2000 on its delivery. The expected life of the equipment is 20 years and salvage value is expected to be $5000 at the end of the 10th year. A&C Property Management, LLC also invested in some property for storage and a warehouse at that same time. The storage property was purchased at $100,000, and the warehouse was purchased for $50,000. The salvage value of the warehouse is expected to be $5000 while its expected life is 25 years.
The equipment purchased 4 years ago was sold to an individual for $7,500. While the warehouse was sold at the end of the 5th year at the price of $65,000.
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