Question
Cash Flow Company is trying to figure out the depreciable base for its new equipment. They paid $75,000 to the supplier, another $10,000 for shipment
Cash Flow Company is trying to figure out the depreciable base for its new equipment. They paid $75,000 to the supplier, another $10,000 for shipment to their factory, $10,000 to the supplier for installation costs, and $10,000 for a 3-year maintenance contract with the supplier. What is the depreciable base for this equipment?
Multiple Choice
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$90,000
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$75,000
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$105,000
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$95,000
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
