Question
On January 1, 2020 Wilson Company purchased factory equipment for $700,000 of cash. Wilson also had to pay 8% MN sales tax on the purchase
On January 1, 2020 Wilson Company purchased factory equipment for $700,000 of cash. Wilson also had to pay 8% MN sales tax on the purchase of this equipment and $34,000 for an engineer to install the equipment (both of these items were also paid with cash). The equipment has a residual value of $80,000 and is projected to be used straight-line over the next 10 years on the production line. On December 31, 2021 Wilson Company sells the factory equipment to a competitor in town for $600,000. How much depreciation expense should Wilson Company record for this factory equipment during the fiscal year ended December 31, 2020?
When Wilson Company sells this asset they will record a loss on sale?
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