Question
1. On January 2, Apple Company purchases factory machine at a cash price of $60,000. Related expenditures are sales taxes $2,000, Insurance after the installation
1. On January 2, Apple Company purchases factory machine at a cash price of $60,000. Related
expenditures are sales taxes $2,000, Insurance after the installation is $200, Installation and testing $1,000, Salvage value is $1,000. Useful life of the machine is 5 years.
c. The formula used in calculating the annual depreciation is:
a.
Annual Depreciation=(Salvage value-Cost)/Useful life
b.
Annual Depreciation=(cost-Useful life)/Salvage value
c.
Annual Depreciation=(cost-Salvage value)/Useful life
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
