Question
On January 1, 2019, Imperial Pearl, Inc. purchased a machine costing $40,000. Imperial also paid $1,000 for transportation and installation. The expected useful life of
On January 1, 2019, Imperial Pearl, Inc. purchased a machine costing $40,000. Imperial also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000.
If Imperial Pearl uses the straight-line depreciation method, which of the following statements is incorrect?
The December 31, 2019 book value is $35,000.
The annual depreciation expense is $6,000.
The December 31, 2021 accumulated depreciation balance is $18,000.
The December 31, 2020 book value is $24,000.
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Auditing And Edp Objective Questions And Explanations
Authors: Irvin N. Gleim, William A. Hillison
5th Edition
0917537521, 978-0917537523
