An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected to

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An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected to last 4 years have a residual value of $50 000. The company is planning to depreciate it on an accelerated basis of $300 000 in Year 1, $200 000 in Year 2, $100 000 in Year 3, and $50 000 in Year 4.

What type of account is accumulated depreciation? Is it an asset, liability or something else?

What are the characteristics of such accounts? Please describe other examples of accounts that are similar to accumulated depreciation?

Related Book For answer-question

Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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Posted Date: Oct 20, 2022 12:01 AM

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An electric car company purchases machinery for $700 000 on January 1st. The machinery is expected to

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1Accumulated depreciation is an asset The accumulated depreciat... View the full answer

Engineering Economic Analysis

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