On April 1, year 1, ABC. Ltd. purchased a piece of equipment for $ 400000 plus installation costs of $ 50000 that were necessary to make the equipment operational. ABC. Ltd. has a December 31, fiscal year end and uses the straight line depreciation method. The piece of equipment is expected to have a useful life of 12 years at which time it will have a residual value of $ 50000. What is the book value of the equipment as of December 31, year 4. Round your answer to the nearest dollar.
On April 1, year 1, ABC. Ltd. purchased a piece of equipment for $ 400000 plus installation costs of $ 50000 that were necessary to make the equipment operational. ABC. Ltd. has a December 31, fiscal year end and uses the straight line depreciation method. The piece of equipment is expected to have a useful life of 12 years at which time it will have a residual value of $ 50000. What is the book value of the equipment as of December 31, year 4. Round your answer to the nearest dollar.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...
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On April 1, year 1, ABC. Ltd. purchased a piece of equipment for $ 400000 plus installation costs of $ 50000 that were necessary to make the equipment operational. ABC. Ltd. has a December 31, fiscal year end and uses the
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