Question
Fawkes Enterprises purchased equipment for $196,000 on January 1, 2021. The equipment is expected to have a 7-year life and a residual value of $14,000.
Fawkes Enterprises purchased equipment for $196,000 on January 1, 2021. The equipment is expected to have a 7-year life and a residual value of $14,000. Fawkes uses the sum-of-the-years'-digits method to calculate depreciation. What amount of depreciation would Fawkes record in 2021 and 2022? What is the book value of the equipment on December 31, 2021 and December 31, 2022?
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
