Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Transcribed Image Text:The Tin company uses the straight-line method to
depreciate its equipment. On May 1, 2018, the company
purchased some equipment for $200,000. The
equipment is estimated to have a useful life of ten years
and a salvage value of $20,000. How much depreciation
expense should Tin record for the equipment in the
adjusting entry on December 31, 2018?
a.$6,000
b.$12,000
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