Nicholson Company purchased equipment on January 1, 2018, for €120,000 with an estimated residual value of €30,000 and estimated useful life of 8 years. On January 1, 2020, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €30,000. Using the straight-line method the new annual depreciation will be? A: 7,500 B: 6,750 C: 10,000 D: 9,000
Nicholson Company purchased equipment on January 1, 2018, for €120,000 with an estimated residual value of €30,000 and estimated useful life of 8 years. On January 1, 2020, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €30,000. Using the straight-line method the new annual depreciation will be? A: 7,500 B: 6,750 C: 10,000 D: 9,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nicholson Company purchased equipment on January 1, 2018, for €120,000 with an estimated residual value of €30,000 and estimated useful life of 8 years. On January 1, 2020, Nicholson decided the equipment will last 12 years from the date of purchase. The residual value is still estimated at €30,000. Using the straight-line method the new annual
A: 7,500
B: 6,750
C: 10,000
D: 9,000
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