Five Satins Company purchased a piece of equipment at the beginning of 2022. The equipment cost $430,000.

Question:

Five Satins Company purchased a piece of equipment at the beginning of 2022. The equipment cost $430,000. It has an estimated service life of 8 years and an expected salvage value of $70,000. The sum-of-the-years’-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $60,000 will be depreciated for a particular calendar year.


Instructions

Show calculations to determine for what particular year the depreciation amount for this asset will be $60,000.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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