Refer to the facts in QS 10-3. Assume that the Cerritos Band uses straight- line depreciation but
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In QS 10-3, On January 2, 2013, the Cerritos Band acquires sound equipment for concert performances at a cost of $ 65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $ 2,000. During year 2013, the band performs 45 concerts. Compute the year 2013 depreciation using the straight-line method.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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