Mango Company purchased equipment for $100,000 and assigned it an estimated salvage value of $10,000 and a useful life of 10 years. After two years of using the double-declining balance method for depreciation, the company decided to switch to the straight-line method. The company also revised the equipment's remaining useful life to 6 years. What is the depreciation expense for the equipment for the third year? Answer a. $12,000 b. $9,000 c. $11,500 d. $13,500
Mango Company purchased equipment for $100,000 and assigned it an estimated salvage value of $10,000 and a useful life of 10 years. After two years of using the double-declining balance method for depreciation, the company decided to switch to the straight-line method. The company also revised the equipment's remaining useful life to 6 years. What is the depreciation expense for the equipment for the third year? Answer a. $12,000 b. $9,000 c. $11,500 d. $13,500
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
Related questions
Question
Mango Company purchased equipment for $100,000 and assigned it an estimated salvage value of $10,000 and a useful life of 10 years. After two years of using the double-declining balance method for
Answer
a.
$12,000
b.
$9,000
c.
$11,500
d.
$13,500
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