Question
Louies Marine Construction, Inc. purchased a motorized barge on January 1, 2023. The company paid cash to the vendor for both the $100,000 acquisition cost
Louies Marine Construction, Inc. purchased a motorized barge on January 1, 2023. The company paid cash to the vendor for both the $100,000 acquisition cost and the additional 6% sales tax due to the State of Michigan. The company also paid $3,000 to a shipping company for delivery of the vessel from the manufacturing facility to its home harbor. The company also paid $2,000 to have a graphics company apply vinyl lettering and logos. Finally, the company remitted $4,000 to its insurance company for the first annual insurance premium on the new barge. Louies Marine Construction, Inc. estimates that the barge will be worth $25,000 at the end of its ten-year useful life. What is the company's depreciable cost for the barge? Enter the number without any formatting (i.e. do not type a comma or dollar sign).
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