Company Zeta bought new office furniture in the year 2000. The purchase cost was

Question

Company Zeta bought new office furniture in the year 2000. The purchase cost was 64086 dollars and in addition it had to spend 14102 dollars for installation. The furniture has been in use since April 21st, 2000. Zeta forecasted that in 2015 the office furniture would have a net salvage value of $1000. Using the US Accelerated Depreciation Schedule, estimate the value of depreciation recorded in the accounting books in the year 2004 if the company decided to sell the furniture on June 5th (of 2004).

Explanation / Answer

Net Depriciation per year : (64086+14102-1000)/15=5145.86;; depreciation recorded in the accounting books in the year 2004:5146*155/365=$2185.3( since company used the furniture for 5months and 5 days in the year 2004).

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.