Question
a.) Tacos al Profesor recently purchased new kitchen equipment that cost 185,200. It cost another 8,500 to ship the equipment and 3,800 to have technicians
a.) Tacos al Profesor recently purchased new kitchen equipment that cost 185,200. It cost another 8,500 to ship the equipment and 3,800 to have technicians install and test the equipment. The city required 2,500 for permitting. What will be the cost of this asset on the company's books?
Please round your answer to the nearest dollar and do not include dollar signs.
b.) Using your answer to the previous question, what will be the annual depreciation expense on the kitchen equipment asset if the company plans on a useful life of 5 years and a 20,000 salvage value?
Please round answers to the nearest whole dollar and do not use dollar signs.
c.) If Tacos al Profesor found that the equipment will last for 7 years instead of 5 and that salvage value could be increased to 25,000 at the end of year 3, what would be the new depreciation expense?
Please round your answer to the nearest whole dollar and do not use dollar signs.
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