ABC Corporation purchased equipment on January 1, 2023, for $80,000. The equipment has an estimated useful life
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Question:
ABC Corporation purchased equipment on January 1, 2023, for $80,000. The equipment has an estimated useful life of 5 years and an estimated residual value of $10,000. ABC uses the straight-line depreciation method.
a) Calculate the annual depreciation expense for the equipment.
b) Prepare the journal entry to record the depreciation expense at the end of the first year, assuming the company has a December 31 fiscal year-end.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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