Assume that an organization purchased two pieces of equipment on April 1st (the first day of its
Question:
Assume that an organization purchased two pieces of equipment on April 1st (the first day of its fiscal year), as follows:
One laboratory equipment that cost $400,000 and has an expected life of 5 years. The salvage value is 5 percent of the cost. No equipment was traded in on this purchase.
One radiology equipment that cost $900,000 and has an expected life of 7 years. The salvage value is 10 percent of the cost. No equipment was traded in on this purchase.
Required:
1. For each piece of equipment compute the straight-line depreciation for:
a) The lab equipment
b) The radiology equipment
2. Compute the double declining balance depreciation for:
a) The lab equipment
b) The radiology equipment
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren