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On January 1, year 1 Taylor company purchased a piece of equipment for $20,000. The equipment has an estimated useful life of three years and
On January 1, year 1 Taylor company purchased a piece of equipment for $20,000. The equipment has an estimated useful life of three years and an estimated salvage value of $5,000. The company uses straight-line depreciation. At the end of year 1, the company throws the equipment away and receives no assets in return. What should the company record as the loss on disposal?
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