Question
9. On January 2, 2020, Chicago Snack Company acquired a food truck for one of their food stalls at a cost of $55,900. The owner
9. On January 2, 2020, Chicago Snack Company acquired a food truck for one of their food stalls at a cost of $55,900. The owner estimated that it would use the food truck for five years and then sell the food truck for $5,900. Calculate depreciation for each year of the food trucks estimated useful life using the straight-line method. Chicagos year end is December 31.
Depreciation Expense every year is __________________________.
10. Smile Collection, a local dentistry clinic, installed a brand new dental chair. The electrical work required to prepare for the installation was $18,000. The invoice price of the equipment $102,000. Additional costs were $3,000 for delivery and $2,000 for insurance during transportation. During installation, the handle of the dental chair was damaged because of carelessness of the delivery guy while bring the unit up to the unit. The cost of repairing the handle was $1,800.
The total cost to be capitalized on the dental chair is _______________________.
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