Question: On January 1 2016 Yallow Cab Inc paid 29 000 cash

On January 1, 2016, Yallow Cab Inc. paid $29,000 cash to purchase a taxi cab. The taxi had a three-year useful life and a $5,000 salvage value.
Required
a. Determine the amount of depreciation expense that would appear on the 2016 and 2017 income statements.
b. Determine the amount of accumulated depreciation that would appear on the 2016 and 2017 balance sheets.
c. Explain how the purchase of equipment would affect the 2016 and 2017 statements of cash flows.

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  • CreatedApril 20, 2015
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