Cottage Ltd is 100% owned by Estate Ltd. On 1 July 2016, Estate Ltd sold an equipment
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Question:
Cottage Ltd is 100% owned by Estate Ltd. On 1 July 2016, Estate Ltd sold an equipment to Cottage Ltd for $280,000. Estate Ltd had originally purchased the equipment for $300,000 on 1 July 2014. The original estimated useful life of the equipment is 12 years. Assuming the originally estimated useful life remains unchanged, calculate the amount of the annual depreciation adjustment resulting from the sale of the equipment.
$3,000
$5,000
$2,500
$4,000
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
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