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Cottage Ltd is 100% owned by Estate Ltd. On 1 July 2016, Estate Ltd sold an equipment to Cottage Ltd for $280,000. Estate Ltd had
Cottage Ltd is 100% owned by Estate Ltd. On 1 July 2016, Estate Ltd sold an equipment to Cottage Ltd for $280,000. Estate Ltd had originally purchased the equipment for $300,000 on 1 July 2014. The original estimated useful life of the equipment is 12 years. Assuming the originally estimated useful life remains unchanged, calculate the amount of the annual depreciation adjustment resulting from the sale of the equipment. Group of answer choices
$3,000
$5,000
$2,500
$4,000
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