Can someone help me with this question? Please show the whole solution, don\'t w
ID: 2588133 • Letter: C
Question
Can someone help me with this question? Please show the whole solution, don't write only the answer. Thank you so much.
On January 1, 2012, Desmet Company purchased office equipment that cost $15,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,000. The equipment had a five year useful life and a $1,200 expected salvage value. Using straight line depreciation, determine the amount of depreciation expense and the amount of accumulated depreciation that would appear on the December 31, 2014 financial statements O $2.960/$2.960. $2.608/$7824. O $2.960/$8.880. $2.600/$7800.Explanation / Answer
Answer is Option (3) $2960/$8880 Cost of the Equipment =$15000 transportation cost =$1000 Expected Salvege value =$1200 depreciation Method = Straight line Method Useful life =5 years Depreciation per year = Cost of the Asset + transportation cost - Salvage Value /Life of the Asset depreciaton per year =$15000+$1000-$1200 /5 =$2960 Depreciation expenses Accumulated depreciation 31/12/2012 $2960 $2960 31/12/2013 $2960 $5920 31/12/2014 $2960 $8880
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.