Suppose an asset cost $28,500 and has an estimated salvage value of $3,500. At the end of two years, the carrying value of the asset is $18,500. What is the useful life of the asset? Assume straight-line depreciation.
Answer to relevant QuestionsMining Expedition Company purchased a coal mine on January 1, 2010, for $8,400,000 and expects the mine to produce 3,500,000 pounds of coal over its useful life. In 2010, 1,100,000 pounds of coal were recovered. In 2011, ...A machine is purchased on July 1, 2009, for $170,000. It has an expected useful life of 10 years and no salvage value. After eight years, the machine is sold for $36,000 cash. What is the gain or loss on the sale?If an asset with a salvage value of $1,000 is being depreciated at a rate of $1,250 per year using the straight-line method over a useful life of eight years, how much did the asset cost?Connor’s Tasty Vegan Restaurant purchased an oven and a delivery vehicle from a “going out of business” sale for a combined total of $32,000. An independent appraiser provides the following market values: ...During its most recent fiscal year, Bargain Airlines grounded 10 of its 747s due to a potential problem with the wing flaps. Although the planes had been repaired by the end of the fiscal year, the company believed the ...
Post your question