On January 2, 20X2, a not-for-profit botanical society received a gift of an exhaustible fixed asset with
Question:
On January 2, 20X2, a not-for-profit botanical society received a gift of an exhaustible fixed asset with an estimated useful life of 10 years and no salvage value.
The donor’s cost of this asset was $20,000, and its fair market value at the date of the gift was $30,000. What amount of depreciation of this asset should the society recognize in its 20X2 financial statements?
a. $3,000
b. $2,500
c. $2,000
d. $0
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Related Book For 
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
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