Question
On January 5, 2018 Calvin's Cropcrushers, Inc. purchased crop crushing equipment for which the following information is available: Original cost.................. $3,800,000 Estimated residual value....... $200,000
On January 5, 2018 Calvin's Cropcrushers, Inc. purchased crop crushing equipment for which the following information is available: Original cost.................. $3,800,000 Estimated residual value....... $200,000 Useful life in years........... 10 years Useful life expressed in operating hours 20,000 hours
4 The book value of the equip. on Dec. 31, 2019 if S/L deprec. is used
5 The depreciation for year 2020 assuming the equipment is sold on May 31, 2020 and the straight line method is used.
6 The book value of the equip. on May 31, 2020 if S/L deprec. is used
7 The amount of the gain or loss (INDICATE GAIN or LOSS and AMOUNT) resulting if the equipment is sold for --> $2,800,000 on May 31, 2020 and S/L depreciation is used.
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