On July 1, 2014 , "ABC" Company purchased equipment at a cost of $462,000. In addition, the company incurred $1,000 installation cost $335 for building a deck where the equipment will standIn addition , the company bought three years of fire insurance for $3751. The equipment was estimated to have a useful life of 5 years and a salvage value of $90,000. On March 10th, 2017 the company decided to increase the useful life of the equipment by 5 years and to increase the salvage value to $73,000 . On June 30 , 2018, a fire in the company's plant caused the total loss of the equipment the date of the fire, the fair value of the machine was $220,000 , and "ABC" received insurance proceeds of $200,000 . The company is using the STRAIGHT LINE FOR DEPRECATION . What is the amount of depreciation expense that must presented on "ABC Company income statement for the year ended December 31st, 2018?

Answer rating: 100% (QA)

Depreciation expense for the year ended December 31 2018 wou... View the full answer