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On January 2,2010, Fel Corp. bought machinery under a contract that required a down payment of 10,000plus twenty-four monthly payments of 5,000 each, for total
On January 2,2010, Fel Corp. bought machinery under a contract that required a down payment of 10,000plus twenty-four monthly payments of 5,000 each, for total cash payments of 130,000. The cash equivalent price of the machinery was 110,000. The machinery has an estimated useful life of ten years and estimated salvage value of 5,000. fel uses straight line depreciation in its 2010 income statement, what amount should Fel report as depreciation for this machinery?
a.) 10,500
b.) 15,000
c.) 25,000
d.)5,000
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