ABC Company purchased equipment on April 1, 2023, for $90,000. ABC depreciated the equipment using the...

  

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ABC Company purchased equipment on April 1, 2023, for $90,000. ABC depreciated the equipment using the straight-line method. The equipment has a 10-year useful life and an estimated salvage value of $6,000. Required: (a) Assuming ABC Company has a 12/31 year-end, calculate what depreciation expense was for 2023. Show your calculations in good form. (b) Prepare the 12/31/23 adjusting journal entry to record the depreciation for 2023. (c) Calculate the book value of the equipment on 12/31/2023 and 12/31/2024. ABC Company purchased equipment on April 1, 2023, for $90,000. ABC depreciated the equipment using the straight-line method. The equipment has a 10-year useful life and an estimated salvage value of $6,000. Required: (a) Assuming ABC Company has a 12/31 year-end, calculate what depreciation expense was for 2023. Show your calculations in good form. (b) Prepare the 12/31/23 adjusting journal entry to record the depreciation for 2023. (c) Calculate the book value of the equipment on 12/31/2023 and 12/31/2024.

Answer rating: 100% (QA)

a Calculating depreciation expense for 2023 using the straightline method Given Cost of ... View the full answer