Question
On January 1, 2021, a company purchased new equipment for $40,000 by paying cash. Other costs associated with the equipment were: transportation costs of $1,000;
On January 1, 2021, a company purchased new equipment for $40,000 by paying cash. Other costs associated with the equipment were: transportation costs of $1,000; sales tax paid of $4,000; and installation cost of $3,500. The useful life is expected to be 5 years with a residual value of $15,000. How much is the Annual Depreciation Expense for 2021?
A. $9,700
B. $5,000
C. None of these are correct.
D. $5,900
E. $6,700
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International Public Financial Management Essentials Of Public Sector Accounting
Authors: Gary Bandy
1st Edition
081535634X, 978-0815356349
